Copper Rises as Dollar's Drop Boosts Investor Demand for Metals; Tin Jumps

Sep 17 (Bloomberg)--

Copper futures rose to a one-week high as the dollar’s decline boosted the appeal of metals as an alternative investment. Tin climbed to the highest price since 2008.

The greenback dropped as much as 0.5 percent against a basket of six major currencies. Copper has jumped 21 percent since July 1 as inventories dropped and the dollar declined.

"The weaker dollar is supportive to metals,” said Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago. "There’s some buying interest because of the currency.”

Copper futures for December delivery gained 2.7 cents, or 0.8 percent, to close at $3.4935 a pound at 1:20 p.m. on the Comex in New York. Earlier, the price reached $3.517, the highest level for a most-active contract since Sept. 7.

On the London Metal Exchange, copper for delivery in three months advanced $80, or 1 percent, to $7,700 a metric ton ($3.49 a pound) at 7 p.m. local time

Tin climbed $345, or 1.5 percent, to $23,495 a ton on the LME. Earlier, the price reached $23,500, the highest level since July 23, 2008. The metal has jumped 39 percent this year.

"The general ban on mining in the tin-rich eastern provinces of Congo, Africa’s largest producer,” is boosting prices, Eugen Weinberg, an analyst at Commerzbank AG, said in a report yesterday. Democratic Republic of Congo President Joseph Kabila suspended all mining operations in three eastern provinces, the mines ministry said on Sept. 11.

Adverse weather may disrupt production in Indonesia, the world’s biggest exporter, the government said.
Aluminum, nickel and zinc also rose in London. Lead fell