Copper Rises in London on Speculation Chinese Imports Will Gain
By Anna Stablum
March 10 (Bloomberg) -- Copper rose in London on speculation China, the world’s largest consumer, imported more metal last month and after stockpiles in warehouses monitored by the London Metal Exchange shrank for a ninth consecutive day.
China will report preliminary import data tomorrow. Tonnage likely increased from the 232,701 metric tons imported in January, according to Nick Moore, an analyst at RBS Global and Banking & Markets in London. LME stockpiles have declined 6.6 percent since Feb. 25.
“We are seeing price stabilization in copper,” Moore said by phone. While global demand is still weak, prices are being supported by mining companies cutting output, he said.
Copper for delivery in three months rose $49, or 1.4 percent, to $3,660 a ton as of 10:30 a.m. in London. The contract reached $3,785.25 on March 6, the highest intraday price since Nov. 27.
In dollar terms, copper is having its second-best start to a year in the last decade. Prices have gained 19 percent, partly on speculation China will add to state reserves. Chinese copper imports fell 19 percent in January compared with December, because businesses were closed for the Lunar New Year Holiday.
Copper inventories monitored by the LME shrank 1.3 percent to 512,025 tons today. Canceled warrants, representing metal scheduled to be removed from warehouses, stand at 46,175 tons.
Three-month aluminum rose $1, or 0.1 percent, to $1,300 a ton. Stockpiles monitored by the LME rose to a record 3.28 million tons and have more than tripled in a year.
Truck Batteries
Lead was unchanged at $1,250 a ton. Prices have gained 25 percent this year, making lead, mainly used in car and truck batteries, the best performer among the six main metals traded on the LME.
Among other LME metals for three-month delivery, tin rose 0.5 percent to $11,000 a ton. Tin exports in February from Indonesia, the world’s biggest exporter of the metal, climbed 35 percent from the previous month, Trade Ministry data showed.
“Activity has picked up a bit now in the first quarter,” said Peter Kettle, research manager at tin industry group Itri Ltd. Output was curbed from October to January because of the monsoon, he said. Production from the world’s second-largest tin producer after China, was forecast to be between 80,000 to 90,000 tons this year, he said. That compares with about 88,000 tons last year.
Zinc rose 1.5 percent to $1,243 a ton, while nickel slid 0.6 percent to $9,622 a ton.
To contact the reporter on this story: Anna Stablum in London at astablum@bloomberg.net.
Last Updated: March 10, 2009 07:11 EDT
