[miningmx.com] — Copper prices rose on
Wednesday, as data showing stronger-than-expected Chinese
imports of the metal quelled some concerns that demand might be
softening in the world’s top base metals consumer.
Copper for three-months delivery on the London Metal
Exchange was at $7,532 a tonne at 1045 GMT from $7,510 at the
close on Tuesday.
Imports of unwrought copper, a key ingredient for China’s
manufacturers and its fast-expanding power sector, outstripped
forecasts by rising 10.3 percent to 322,282 tonnes, or 22.2
percent based on a daily average.
“The copper imports are indicative of pretty robust demand
growth within China,” said Daniel Smith, an analyst at Standard
Chartered. “Chinese imports of base metals will remain much
higher than historical levels. They’re going to surprise on the
upside through the year.”
The data reassured investors who have fretted China’s buying
is waning this year, compared to 2009 when Chinese demand helped
the metal used in power and construction soar 140 percent.
Imports of copper scrap slipped 17 percent from January,
which analysts attributed to a lack of scrap availability.
STOCKS DROP
A trend of falling LME stocks remained a key support for
copper, with stocks down 700 tonnes on Tuesday to 538,175
tonnes.
Capping gains, however, the dollar rose against a basket of
major currencies, making dollar-priced metals costlier for
holders of other currencies.
The euro fell against the dollar as investors continued to
fret about debt problems in euro zone countries such as Portugal
and Greece.
“Worries about sovereign debts in Europe have weighed on
both the euro and investor sentiment, while concerns have also
focused on China as Beijing has announced a series of monetary
tightening measures,” said Leon Westgate, an analyst at Standard
Bank.
“However, after a period of risk aversion in late January
and early February, risk appetite seems to be returning.”
Aluminium traded at $2,253 from $2,258. LME stocks of the
metal, used in transport and packaging, fell 5,150 tonnes to
some 4.5 million tonnes, their lowest level since July.
Earlier this year stocks hit a record above 4.6 million
tonnes. A large portion is tied up in finance deals, to release
cash for producers and to earn banks higher returns than they
would get in money markets.
Zinc was at $2,378.75 from $2,375 and battery material lead
was at $2,278 from $2,240. Tin traded at $17,600 from $17,550
and nickel was at $22,275 from $22,250.
Commodity trader Glencore, which has a 35 percent stake in
mining group Xstrata, warned of a bumpy recovery after posting a
43 percent fall in 2009 net profit on weak prices hit by the
downturn.
