Metals - Copper falls back from 10-week high after increase in LME stocks

Metals - Copper falls back from 10-week high after increase in LME stocks

	Published : Mon, 23 Jul 2007 10:19 By : Agencies Print this Story

LONDON (Thomson Financial) - Copper fell back after hitting a fresh 10-week high in early trade, following reports that stockpiles at London Metals Exchange (LME) certified warehouses had risen back above 100,000 tonnes.

Copper inventories increased by 2,725 tonnes to 101,400 tonnes, helping to ease short-term supply concerns.

'The stocks are up and the market is very fickle at the moment so we are seeing prices come off a bit,' a trader at the LME said. 'The market probably went home a little bit long on Friday, and with some bearish news and quite light trade it's going to slip down.'

At 10.00 am, LME copper for three-month delivery was trading at 8,074 usd per tonne against 8,111 usd at the close on Friday.

Early in the session, copper had traded up to 8,212 usd, it's highest level since early May, as strong Chinese economic growth continued to buoy investor confidence.

In data out last week, the statistics Bureau in Beijing said China's economy expanded by 11.9 pct in the second quarter, compared with last year, to record its fastest growth in 12 years.

However, reports that Chinese copper imports were down 6.8 pct in June from May, have added to pressure on prices this morning, despite a strong long-term demand outlook for the world's largest consumer of the red metal.

A decline in Chinese imports going into the second half of the year has been widely predicted by analysts, following massive inflows into the country during the first few months of the year.

In other metals, lead was trading at 3,465 usd per tonne against 3,494 usd at the close on Friday. It matched its all-time high of 3,500 usd early in the session, as supply concerns and inflows of fund money continued to support prices which have more than doubled this year.

Nickel, which has lost around 17,500 usd per tonne in value since striking its all-time high in May, recovered slightly to trade at 34,150 usd per tonne, basis three months, against 33,905 usd.

Three-month tin, which hit a new high of 15,700 usd per tonne on Thursday in intraday trades, matched the same figure this morning against 15,450 usd.

Among other LME-traded metals, aluminium fell to 2,825 usd per tonne, basis three months, from 2,856 usd and three-month zinc was down at 3,685 usd per tonne from 3,705 usd.

d.sheppard@thomson.com

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