Metals - Copper hits 1 1/2-mnth peak on tight global inventory UPDATE
07.20.07, 6:51 AM ET
forbes.com
(Recasts, updates prices, adds details, comments)
LONDON (Thomson Financial) - Copper rose to its highest price since mid May and held firmly above 8,000 usd, a key psychological level, as falling global stocks sparked tight supply jitters.
Earlier, the Shanghai Futures Exchange in China, the world's top consumer, said its copper stockpiles fell 0.89 pct to 91,182 tonnes in the week to July 20.
Stocks stored in LME certified warehouses fell 1,350 tonnes to 98,675 tonnes, said the exchange in a daily report.
'The Chinese market is steadily absorbing a large amount imported between March and May,' said JP Morgan analyst Michael Jansen. 'There's still strong supplies of the metal in China but the excess supply is slowly fading.'
At 10.23 am, LME copper for three-month delivery was trading at 8,083 usd a tonne against 7,971 usd at the close yesterday. Earlier prices struck 8,090 usd, its highest price since May 10. Copper has gained some 5 pct since the start of the month.
Meanwhile, talks at Codelco's Chile mine to end a strike failed to pressure prices lower. Codelco, the world's biggest copper miner, said production is now 10 pct short of normal levels.
'There's all sorts of different parties involved so it (the strike) is difficult to conclude,' said JP Morgan's Jansen.
All other base metals extended yesterday's gains on increased fund buying following strong Chinese GDP growth reported yesterday which rose above market expectations, and as a weak US currency made dollar denominated commodities cheaper for foreign currency holders.
'Base metals prices put in a strong performance across the board yesterday with fund buying lifting prices in what is usually the seasonally slow summer period for the complex,' said Barclays (nyse: BCS - news - people ) Capital analysts.
Lead struck yet another all-time high this morning, rising to 3,480 usd before easing slightly to 3,475 usd from 3,336 usd yesterday. Lead has jumped to a series of all-time highs this year, benefiting from supply shortages and rising demand.
Lower shipments both from China and the Magellan mine in Australia together with rising Chinese demand have stretched supply. A 10 pct export tax levied on Chinese lead issued in a bid to address a domestic shortfall has further squeezed the market.
'These overall bullish fundamentals brought significant amounts of non-commercial money into the market,' said Calyon analyst Michael Widmer.
Tin was up at 15,550 usd against 15,400 usd. Prices for the metal, used extensively in electronics soldering, rose to its highest point since the new contract started in 1989, at 15,700 usd yesterday.
Elsewhere, nickel was up at 34,800 usd from 33,905 usd, aluminium was higher at 2,856 usd from 2,833 usd and zinc was also up at 3,650 usd from 3,570 usd.
anealla.safdar@thomson.com |
