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Copper Heads for Biggest Weekly Gain in Two Months; Zinc Rises
Jun 11,2010 13:06CST
industry news

SHANGHAI, June 11 -- Copper headed for its largest weekly advance in two months on reduced concern that Europe's debt crisis and a slowdown in China, the world's biggest consumer, would hurt demand. Zinc increased.

Three-month delivery copper fell 0.5 percent to $6,378 a metric ton on the London Metal Exchange, after gaining as much as 0.2 percent, and trimming its gain this week to 1.6 percent, the most since the start of April. Zinc increased 0.8 percent to $1,734 a ton after climbing as much as 1.5 percent.

The euro traded near its strongest level since June 4 and the Dollar Index is poised for the first weekly decline in three, as speculation Europe's debt crisis is unlikely to derail global growth fueled investor appetite for riskier assets. China's industrial output rose 16.5 percent in May from a year earlier, a government report showed today, less than economists' median forecast of 17 percent. In April, output grew 17.8 percent.

"This week's rebound, technical on the dollar in my view, is pretty attention-grabbing for investors," Huang Hongjun, an analyst at Jinrui Futures Co., said from Shenzhen today. "The gain doesn't signal a flip of the weak trend," he added.

Copper entered a bear market last week, plunging more than 20 percent from an April peak on concern the global economic recovery may be at risk, imperiling demand. The metal slumped as low as $6,037.50 on June 7, the lowest price in eight months.

Copper for September delivery in Shanghai jumped as much as 2 percent to 51,640 yuan ($7,561) a ton and traded at 51,270 yuan. Aluminum in London was little changed at $1,948 a ton, lead dipped 0.2 percent to $1,680 a ton, nickel was little changed at $18,950 a ton and tin was yet to trade.



copper Cu
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