AFX News LimitedMetals - Copper rises as global stock fall...

AFX News Limited
Metals - Copper rises as global stock fall stokes tight supply jitters
07.20.07, 5:55 AM ET

LONDON (Thomson Financial) - Copper rose above 8,000 usd, a key psychological level, as stocks fell in top consumer China, while global inventory tracked by the LME remained at lower levels. Strike action in Chile continued to lend support.

'The Chinese market is steadily absorbing a large amount imported between March and May,' said JP Morgan analyst Michael Jansen. 'There's still strong supplies of the metal in China but the excess supply is slowly fading.'

At 9.30 am, LME copper for three-month delivery was trading at 8,060 usd a tonne against 7,971 usd at the close yesterday. Copper has gained some 5 pct since the start of the month.

Earlier, the Shanghai Futures Exchange said its copper stockpiles fell 0.89 pct to 91,182 tonnes in the week to July 20.

Stocks stored in LME certified warehouses fell 1,350 tonnes to 98,675 tonnes, said the exchange in a daily report.

Meanwhile, talks at Codelco's Chile mine to end a strike failed to pressure prices lower. Codelco, the world's biggest copper miner, said production is now 10 pct short of normal levels.

'There's all sorts of different parties involved so it (the strike) is difficult to conclude,' said Jansen.

In other metals, lead struck yet another all-time high, rising to 3,460 usd before easing slightly to 3,440 usd from 3,336 usd yesterday.

Tin was up at 15,450 usd against 15,400 usd. Prices for the metal, used extensively in electronics soldering, rose to its highest point since the new contract started in 1989, at 15,700 usd yesterday.

Elsewhere, nickel was up at 34,400 usd from 33,905 usd, aluminium was higher at 2,854 usd from 2,833 usd and zinc was also up at 3,635 usd from 3,570 usd.

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