Copper declines as stocks climb

Print this page Posted on : 12-05-2009 by recycleinme.com

Reuters

London, Dec. 4

Copper eased on Friday, drifting away from near 15-month high hit earlier in the week, as inventories rose and investors cautiously awaited key US jobs numbers from the world's largest economy.

By 1056 GMT, copper for three-month delivery on the London Metal Exchange fell to $7,039.75 a tonne from $7,080 at the close on Thursday. Used in power and construction, copper hit an almost 15-month high at $7,170 on Wednesday.

Prices of the red metal have more than doubled this year and are on track for its biggest annual rise since at least 1978.

A weak dollar, Chinese buying, improving macro data and new investor cash have stoked industrial metal prices in 2009.

As a sign that fundamentals remain weak, LME inventories climbed 675 tonnes to 446,075 tonnes, the highest since April.

Among other industrial metals, aluminium fell $6 to $2,128. LME stocks for the metal, used in transport and packaging, rose 1,025 tonnes to remain near record highs above 4.5 million tonnes.

Metals analysts downplayed the immediate impact on aluminium prices, after an attack on Guinea's junta leader. Nickel traded at $15,925 from $16,005 while lead was at $2,366 from $2,409. Zinc traded at $2,371.25 a tonne from $2,410 and tin was at $15,160 from $15,175.

Source : Business Line