Farallon Resources Ltd. (fka FRLIF)

[the cork]

Zinc little changed but Copper Rallies, Heads for Weekly Gain, as Shanghai Advances After Holiday
By Glenys Sim - Oct 7, 2010 9:50 PM PT

Copper rebounded, on pace for its longest winning streak in nine months, as the dollar declined and investors in China bought the metal after London Metal Exchange prices advanced during the country’s week-long National Day holiday. Lead and nickel gained.

Three-month delivery copper added as much as 0.8 percent to $8,165 a metric ton, after losing as much as 0.7 percent earlier. Futures reached a 27-month high of $8,326 on Oct. 6 and traded at $8,146 by 11:20 a.m. Singapore time, up by 0.5 percent this week. Prices have risen for a fourth week, the longest period of advance since the four weeks ending Jan. 8.

“The weakness in the dollar is definitely aiding the rally in metals prices,” Pan Jinghua, an analyst at Citic Futures Co., said from Shanghai. “Fundamentally we’re moving into the peak demand season and this should help sustain the rally.”

Copper in London advanced 1.1 percent from Oct. 1-7 as the dollar slid on prospects for a further easing of monetary policy by the Federal Reserve to bolster the economy. It fell against a six-currency basket including the euro and yen on speculation the U.S. central bank will debase the dollar by stepping up purchases of government debt to support the economic recovery.

January-delivery copper on the Shanghai Futures Exchange rose as much as 1.4 percent to 61,450 yuan ($9,211) a ton, the highest level since April 16, and was at 61,040 yuan at the midday break. China’s financial markets re-opened today.

“The gap between London and Shanghai got too large in the past week,” Jia Zheng, a trader at Soochow Futures Co., said from Shanghai. “If Chinese investors try to play catch-up in Shanghai, it may help support London prices.”

China Property

Copper in Shanghai declined as much as 1.1 percent earlier after Shanghai introduced new measures to curb soaring home prices including restricting home purchases to one per household, increasing the supply of residential land, and using a property tax to cool the real estate market.

Property prices in 70 major cities rose 9.3 percent in August from a year earlier, prompting the government to extend a crackdown on speculators and multiple home purchases. Measures taken since April include curbing loans for third-home purchases, increasing down-payment requirements and raising mortgage rates.

The latest measures are “more significant than expected,” Deutsche Bank AG analysts led by Tony Tsang wrote in a report dated yesterday. “This in our view highlighted the strong determination of the central government and local governments to cool down the property market.”

Aluminum in London gained 0.9 percent to $2,345.25 a ton, lead climbed 1 percent to $2,230 a ton and nickel rose 1 percent to $24,128 a ton. Zinc was unchanged at $2,261 a ton, while tin added 0.4 percent to $25,700 a ton at 11:36 a.m. in Singapore.

http://www.bloomberg.com/news/2010-10-08/copper-rallies-heads-for-weekly-gain-as-shanghai-advances-after-holiday.html