Industrial Metals Price Watch: Copper Gains on Signs of Stabilising Growth in China

By:
on Jun 3, 2013
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Copper gained on the London Metal Exchange on Monday, June 3 after China’s official manufacturing index released over the weekend showed signs of stabilising growth in the world’s second biggest economy. Nickel hit a six-week high on the back of a China-related media report.

The nickel price for delivery in three months gained as much as 5.2 percent to $15,600 a tonne, the highest level since April 17, following Monday’s report by the Financial Times that China’s State Reserve Bureau had bought about 30,000 tons of nickel, equivalent to one-sixth of LME stocks of the metal.
“We had a good official manufacturing number and the FT report is also helping,” Bloomberg quoted Hwang Il Doo, a senior metals trader at Seoul-based Korea Exchange Bank Futures Co., as saying.

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The copper price benefitted from the release of Chinese data on Saturday, which showed a pickup in growth a day after President Xi Jinping said that the expansion was on a more stable footing. China is the world’s largest consumer of the industrial metal.
!m[Nickel Hits Six-Week High on Report of Large Chinese Purchase](/uploads/story/2712/thumbs/pic1_inline.png)

Copper for delivery in three months rose to as high as $7,397.75 a ton on the London Metal Exchange on Monday, up 1.2 percent. Prices gained 3.6 percent last month. Futures for delivery in July rose 1.6 percent to $3.345 a pound on the Comex.
Stockpiles of copper monitored by the LME fell to 608,450 tons on May 31, the first monthly decline since September. Yet, the holdings’ have still grown by 90 percent this year, touching their highest level in a decade, Bloomberg noted.
Lead, zinc, aluminium and tin also advanced on the London Metal Exchange on Monday.

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Commodity Precious Metals