Copper, nickel and aluminium prices rising on a recovery in Chinese demand

Tag : lead,copper
 Copper eased on Thursday on concernsover a lack of demand from China, the world's biggest user of themetal, but prices were supported by a weaker dollar.
"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."
Copper for delivery in three months on the London Metal Exchangefell to $7,565 per tonne at 1000 GMT from a last quote of$7,650/7,655 on Wednesday.
About 6,000 tonnes of refined copper has arrived in Shanghai, whileinventories in LME warehouses of the metal used in construction andpower cables rose 2,200 tonnes to 170,050, the highest level sinceFeb. 5.
"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.
However, prices on Thursday were supported by the weaker dollarmaking commodities an attractive hedge and makes dollar-pricedmetals cheaper for holders of other currencies.
In a note Fairfax analyst John Meyer said: "It is the relativelyrapid and consistent strengthening of the dollar since 27th of Julywhich has pushed gold, platinum and some other commodities lower.
"While some currency pressure may remain we see copper, nickel andaluminium prices rising on a recovery in Chinese demand."
Lead gained for a second consecutive day, rising as much as 3.7percent to $2,125 a tonne, its highest level since Aug. 7. Leadtraded at $2,074 versus Wednesday's $2,050.
Prices for the metal, used in batteries, jumped more than 11percent on Wednesday in a short-covering rally.
Aluminium declined to $2,753 a tonne from $2,765 as rising oilprices put pressure on the energy-intensive metal and asinventories in LME warehouses rose 5,600 tonnes to 1.168 million,the highest level since April 2004.
While nickel dropped to $20,400 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," saidFairfax's Meyer.
Zinc, mainly used to galvanise steel, fell to $1,810 from $1,849 atonne, while tin dropped to $20,100 a tonne from $20,550.

Metal Prices at 1004 GMT Metal Last Change Percent Move End 2007Ytd Percent
move LME Cu 7550.00 -30.00 -0.40 6670.00 13.19 SHFE Cu* 59420.00-80.00 -0.13 56880.00 4.47 LME Alum 2748.00 -17.00 -0.61 2403.0014.36 SHFE Alu* 17880.00 -150.00 -0.83 18180.00 -1.65 COMEX Cu**350.75 0.00 +0.00 303.05 15.74 LME Zinc 1803.00 -46.00 -2.492370.00 -23.92 SHFE Zinc* 14405.00 70.00 +0.49 18950.00 -23.98 LMENick 20275.00 -725.00 -3.45 26350.00 -23.06 LME Lead 2076.00 26.00+1.27 2550.00 -18.59 LME Tin 20087.00 -463.00 -2.25 16400.00 22.48** 1st contract month for COMEX copper * 3rd contact month for SHFEAL, CU and ZN SHFE ZN began trading on 26/3/07 (Reporting by JulieCrust; editing by Sharon Lindores) Copyright 2008 Reuters, Click for Restriction