Highlighting worries about weak demand of copper from China

Tag : lead,copper
Industrial metals lost ground onThursday, with copper falling around 1.5 percent as inventories ofthe metal rose, highlighting worries about weak demand from China,the world's biggest consumer.
Copper for delivery in three months on the London Metal Exchangefell to $7,535 per tonne from a last quote of $7,650/7,655 onWednesday.
The dollar remained weak against the euro during European tradinghours but failed to offer much support. Analyst Edward Meir at MFGlobal in New York said metals focused on their own fundamentals.
"When you take rising stocks and questions about demand -- allthese things are keeping a lid on the metals complex," Meir said.
Inventories at the LME-registered warehouses rose a hefty 2,200tonnes on Thursday, bringing total stocks to 170,050, the highestlevel since Feb. 5. In Shanghai another 6,000 tonnes of spot wasexpected to come onto the market this week.
"People are concerned about the macroeconomic environment," saidanalyst Gayle Berry at Barclays (nyse: BCS - news - people ) Capital. "There isn't an indication of a pick-up in buyinganywhere, but particularly in China where we need to see buyingpick up if we are going to see prices move higher."
"These builds in stocks are only adding to concerns that we aremoving into a weaker market environment through the second half ofthe year," said Berry.

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Aluminium closed at $2,730 a tonne from $2,765 as rising oil pricesput pressure on the energy-intensive metal and as inventories inLME warehouses rose 5,600 tonnes to 1.168 million, the highestlevel since April 2004.
Lead gained for a second consecutive day, rising as much as 3.7percent to $2,125 a tonne, its highest level since Aug. 7. It endedthe day at $2,040 versus Wednesday's $2,050.
Prices for the metal, used in batteries, jumped more than 11percent on Wednesday in a short-covering rally.
"The fundamental backdrop for lead is looking increasinglysupportive," said Berry at Barclays.
While nickel dropped to $20,500 from $21,000 on continuing concernsabout demand from stainless steel producers, the biggest users ofthe metal.
"Despite the barrage of negative news we believe that prices forcopper, nickel and aluminium should prove robust for the next 6-12months unless the global economy suffers further slowing," saidJohn Meyer, analyst at Fairfax.
Zinc, mainly used to galvanise steel, fell to $1,799 from $1,849 atonne, while tin closed at $20,150 a tonne from $20,550.
Metal Prices at 1611 GMT Metal Last Change Percent Move End 2007Ytd Percent
move LME Cu 7530.00 -50.00 -0.66 6670.00 12.89 SHFE Cu* 59420.00-80.00 -0.13 56880.00 4.47 LME Alum 2730.00 -35.00 -1.27 2403.0013.61 SHFE Alu* 17880.00 -150.00 -0.83 18180.00 -1.65 COMEX Cu**341.65 -5.50 -1.58 303.05 12.74 LME Zinc 1792.00 -57.00 -3.082370.00 -24.39 SHFE Zinc* 14405.00 70.00 +0.49 18950.00 -23.98 LMENick 20322.00 -678.00 -3.23 26350.00 -22.88 LME Lead 2029.00 -21.00-1.02 2550.00 -20.43 LME Tin 20100.00 -450.00 -2.19 16400.00 22.56** 1st contract month for COMEX copper * 3rd contact month for SHFEAL, CU and ZN SHFE ZN began trading on 26/3/07 (Additionalreporting by Humeyra Pamuk; editing by Peter Blackburn) Copyright 2008 Reuters, Click for Restriction