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Copper Gains as Stockpiles Plunge to 9-Month Low, Boosting Demand Outlook
Aug 18, 2010 14:25CST
Aug 18, 2010 (Bloomberg)—
Buzz Print Copper climbed to the highest in more than a week as inventories slumped a nine-month low, raising speculation that demand is improving.
Three-month copper on the London Metal Exchange rose as much as 0.4 percent to $7,409 a metric ton, the highest price since Aug. 10, and traded at $7,390 at 10:26 a.m. in Singapore. The metal gained 1.8 percent yesterday, the most since Aug. 2. The November-delivery contract on the Shanghai Futures Exchange climbed as much as 1.2 percent to 58,460 yuan ($8,612) a metric ton, before trading at 58,410 yuan.
"Declining stockpiles are definitely helping sentiment,” Wang Yingliang, an analyst at Shenyin Wanguo Futures Co., said from Shanghai.
Stockpiles tallied by the London Metal Exchange dropped for a third day to 405,025 tons yesterday, the lowest level since Nov. 13.
Canceled warrants, or inventories earmarked for withdrawal, rose for a second day, by 11.5 percent.
"Expectations for further dollar weakness and rising inflation will help support prices of commodities,” said Wang.
The dollar rose for the first time in three days against a basket of six currencies including the euro and yen as futures indicated the Standard & Poor’s Index of stocks will decline, boosting demand for safer assets.
Aluminum in London rose 0.2 percent to $2,145 a ton, zinc climbed 1 percent to $2,144.75 a ton and lead gained 1.2 percent to $2,155 a ton. Nickel increased 1.4 percent to $21,249 a ton, while tin added 0.3 percent to $21,370 a ton.
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