Copper Jumps to 13 month high in Shanghai on Economic Data
Tuesday, 27 Oct 2009
Bloomberg reported that copper advanced for a third day to a 13 month high in Shanghai after stockpiles dropped for a fourth week in 5 as the world’s largest metals user expanded at the fastest pace in a year. Zinc surged to the highest in 17 months.
The Shanghai Futures Exchange reported after the market closed on October 23rd 2009 that the metal also gained after refined copper imports by China expanded for the first time in 3 months as increasing demand outweighed the higher cost of imports. Inventories of copper in Shanghai warehouses fell 4.2% to 95,976 tonnes last week. China’s economy expanded 8.9% in the third quarter from a year earlier.
Mr Zeng Chao an analyst at Everbright Futures Company said that “Economic data has been positive for the metals market. Expectations for a weaker dollar will also continue to drive commodities as a whole higher.”
January delivery copper on the Shanghai Futures Exchange added as much as 0.8% to CNY 51,720 per tonne, the highest for a most active contact since September 26th 2008. It traded at CNY 51,660 at 10:37 AM local time. Zinc futures advanced to CNY 17,070 per tonne the highest since May 29th 2008.
Copper for delivery in 3 months on the London Metal Exchange gained as much as 0.7% to USD 6,695 per tonne and last traded at USD 6,683 per tonne. It climbed to USD 6,714 per tonne on October 23rd 2009, the highest price since September 29th 2008, capping its best weekly performance since the week ending August 7th 2009. The Dollar Index, which tracks the greenback against the currencies of six trading partners including the euro and yen, fell for the first time in three days today as gains in Asian stocks damped demand for haven assets.
Among other LME traded metals, aluminum rose 0.4% to USD 1,980 per tonne, nickel climbed 1.6% to USD 19,300 per tonne and tin added 0.4 % to USD 15,200 a ton. Zinc increased 0.8% to USD 2,290 per tonne while lead added 1.6% to USD 2,397 as of 10:40 AM in Singapore.
