Copper hits 16-month high
12:57 EST Thursday, Dec 31, 2009
New York, London — Copper prices rose more than 1 per cent to 16-month highs and ended with an annual gain of almost 140 per cent Thursday as fund buying and a looming mine strike in Chile buoyed prices on the final day of 2009.
Benchmark copper for three-month delivery on the London Metal Exchange closed up $45 (U.S.) at $7,375 a tonne. The metal, used in power and construction, earlier touched $7,423.75, its highest since Sept. 1, 2008.
Unprecedented levels of Chinese imports, new investor cash, improving economic data and a weaker dollar have combined to more than double LME copper prices this year from the 2008 closing level of $3,090.
On the New York Mercantile Exchange's Comex metals division, benchmark copper for March settled up 0.15 cent at $3.3465 per pound. The session high was $3.3790 – a peak not seen since Aug. 21, 2008.
Analysts said they expected the current investment momentum in copper to hold at least through early 2010.
“Next year we'll probably see between $8,000 and $10,000 in copper,” Herwig Schmidt, head of sales at Triland Metals, said of LME prices.
“It's not that I'm bullish on industrial demand, [it's] more the chase for useful assets and anticipation on inflation. You cannot help but be in commodities,” Mr. Schmidt added.
Economic expectations were supported by improving U.S. jobless claims data Thursday.
In recent sessions, supply issues have also buoyed prices.
Workers at Chile's giant Chuquicamata mine are preparing to down tools within days after owner Codelco, the world's No. 1 copper miner, refused to back down in a wage negotiation spat. Chuquicamata produces around 4 per cent of the world's mined copper.
Still, copper prices are some way off their all-time high of $8,940 notched in July, 2008, before the global economic downturn caused markets to tumble.
And this year's rally has occurred amid a steady rise in stockpiles of the metal in LME warehouses. Inventories rose again at the close of Wednesday's session, climbing 6,375 tonnes to touch above 500,000 tonnes, their highest levels since April.
Zinc hit its highest prices since March 2008 and tin traded at its firmest level in more than 12 months.
Aluminum ended at $2,230 in LME rings against $2,242. It earlier touched a near two-week high at $2,274. LME stockpiles of the metal, used in transport and packaging, climbed 475 tonnes to remain near record levels above 4.6 million tonnes.
“We are expecting further improvements in primary aluminum consumption in 2010 as the residential construction and automotive markets in the U.S. start to recover, albeit from a low base,” analysts at Morgan Stanley said in a note.
Steel making ingredient nickel closed at $18,525 in LME rings from $18,900.
Battery material lead ended at $2,432 from $2,411. LME nickel's stockpiles jumped 4,074 tonnes to a new record of 158,010 tonnes.
Zinc closed at $2,560 in official rings from $2,552 and tin was at $16,950 from $16,700.
Benchmark copper for three-month delivery on the London Metal Exchange closed up $45 (U.S.) at $7,375 a tonne. The metal, used in power and construction, earlier touched $7,423.75, its highest since Sept. 1, 2008.
Unprecedented levels of Chinese imports, new investor cash, improving economic data and a weaker dollar have combined to more than double LME copper prices this year from the 2008 closing level of $3,090.
On the New York Mercantile Exchange's Comex metals division, benchmark copper for March settled up 0.15 cent at $3.3465 per pound. The session high was $3.3790 – a peak not seen since Aug. 21, 2008.
Analysts said they expected the current investment momentum in copper to hold at least through early 2010.
“Next year we'll probably see between $8,000 and $10,000 in copper,” Herwig Schmidt, head of sales at Triland Metals, said of LME prices.
“It's not that I'm bullish on industrial demand, [it's] more the chase for useful assets and anticipation on inflation. You cannot help but be in commodities,” Mr. Schmidt added.
Economic expectations were supported by improving U.S. jobless claims data Thursday.
In recent sessions, supply issues have also buoyed prices.
Workers at Chile's giant Chuquicamata mine are preparing to down tools within days after owner Codelco, the world's No. 1 copper miner, refused to back down in a wage negotiation spat. Chuquicamata produces around 4 per cent of the world's mined copper.
Still, copper prices are some way off their all-time high of $8,940 notched in July, 2008, before the global economic downturn caused markets to tumble.
And this year's rally has occurred amid a steady rise in stockpiles of the metal in LME warehouses. Inventories rose again at the close of Wednesday's session, climbing 6,375 tonnes to touch above 500,000 tonnes, their highest levels since April.
Zinc hit its highest prices since March 2008 and tin traded at its firmest level in more than 12 months.
Aluminum ended at $2,230 in LME rings against $2,242. It earlier touched a near two-week high at $2,274. LME stockpiles of the metal, used in transport and packaging, climbed 475 tonnes to remain near record levels above 4.6 million tonnes.
“We are expecting further improvements in primary aluminum consumption in 2010 as the residential construction and automotive markets in the U.S. start to recover, albeit from a low base,” analysts at Morgan Stanley said in a note.
Steel making ingredient nickel closed at $18,525 in LME rings from $18,900.
Battery material lead ended at $2,432 from $2,411. LME nickel's stockpiles jumped 4,074 tonnes to a new record of 158,010 tonnes.
Zinc closed at $2,560 in official rings from $2,552 and tin was at $16,950 from $16,700.
No comments:
Post a Comment