GREY:MLKKF - Post by User
Post by
Birpind1on Dec 12, 2009 1:12am
524 Views
Post# 16580474
copper inventories drop in china
copper inventories drop in china
Dec. 11 (Bloomberg) -- Copper prices rose, halting a six- session slide, as China’s industrial output increased more than forecast in November and the country’s imports of the metal climbed from a nine-month low.
Factory output in China, the world’s biggest metal consumer, surged 19 percent from a year earlier, the statistics bureau said. Analysts projected 18 percent. Imports of copper and related products jumped 10 percent from October, the customs office said. Copper prices have more than doubled this year as China’s imports gained to a record in the first half.
“The bottom line is we think underlying consumption is booming,” said Max Layton, an analyst at Macquarie Bank Ltd. in London.
Copper futures for March delivery rose 3 cents, or 1 percent, to $3.133 a pound on the Comex division of the New York Mercantile Exchange. The price dropped 4.8 percent in the previous six sessions.
This week, inventories monitored by the Shanghai Futures Exchange fell 8.6 percent to 95,676 metric tons, the lowest since early October
The drop was “bullish on a two- to three-month view,” Layton said.
Copper pared gains after reports on the U.S. economy increased speculation the Federal Reserve will raise borrowing costs, boosting the dollar.
Confidence among U.S. consumers increased in December and retail sales last month advanced more than analysts forecast. The greenback rose to a five-week high against a basket of six major currencies, curbing demand for commodities as an alternative asset.
‘Crimp on Commodities’
“Looking into next week, if the dollar continues to climb, it will put a crimp on commodities in general and also copper,” said William O’Neill, a partner at Logic Advisors in Uppper Saddle River, New Jersey. “We’ll probably be dominated by dollar movements for the rest of the year.”
Copper for delivery in three months rose 0.4 percent to $6,835 a metric ton ($3.10 a pound) on the London Metal Exchange.
Aluminum, nickel, lead and zinc prices also climbed in London. Tin fell.