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Copper in Shanghai Advances for Fifth Day as Inventories Drop

[Ni] CBI Morning Review - 2009/6/29 Nickel Market

SHANGHAI, June 29 -- Copper in Shanghai climbed for a fifth day on optimism that demand may be picking up as global stockpiles decline.
&nbsp;&nbsp;&nbsp; Copper inventories in Shanghai fell 18 percent last week, the first drop in four weeks, the Shanghai Futures Exchange said in a report after the market closed June 26. Stockpiles of the metal tallied by the London Metal Exchange have declined every day since May 7.
&nbsp;&nbsp;&nbsp; &quot;The large drop in inventories certainly lends support to the market,&quot; Zeng Chao, analyst at Everbright Futures Co, said in an e-mail.
&nbsp;&nbsp;&nbsp; October-delivery copper on the Shanghai Futures Exchange, the most-active contract, gained as much as 0.9 percent to 40,740 yuan ($5,962) a metric ton and traded at 40,490 yuan at 10:03 a.m. Singapore time.
&nbsp;&nbsp;&nbsp; Three-month delivery copper on the London Metal Exchange rose as much as 1.8 percent to $5,125 a ton before trading at $5,105 a ton. Copper for September delivery in New York was up 0.6 percent at $2.3235 a pound.
&nbsp;&nbsp;&nbsp; &quot;Copper in the international market will continue to take direction from the U.S. dollar and crude oil,&quot; said Zeng. &quot;In the coming weeks, we may see Shanghai reverting back to tracking London.&quot;
&nbsp;&nbsp;&nbsp; Copper futures in China have led prices in London since April, Gu Jianjun, a trader at Jinyuan Futures Co., a unit of Tongling Nonferrous Metals Group Co., said June 24.
&nbsp;&nbsp;&nbsp; Among other LME-traded metals, aluminum rose 0.4 percent to $1,651 a ton, zinc added 1.2 percent to $1,600 a ton and lead gained 0.3 percent to $1,720 a ton. Nickel was little changed at $15,830 a ton, while tin hadn't traded as of 10:05 a.m. in Singapore.
&nbsp;&nbsp;&nbsp; (Source: Bloomberg)
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