Friday, March 6, 2009

Copper hits three-month high on China hopes

Copper rose 3% to hit three-month highs on Friday as a fall in inventories and a weaker dollar lifted metal markets, while investors sought more clarity on Chinese demand.

Copper for three-month delivery on the London Metal Exchange traded at US$3,725/t in rings, from US$3,680 at the close on Thursday and compared with a session high at US$3,785.25.

LME copper stocks fell 3,175t to 522,025t, in line with falls seen in the past week, with Asian deliveries rising. But canceled warrants -- material earmarked for delivery -- fell to 54,000t from Thursday's 60,775t.

The question on investors' lips now is whether the rises seen in canceled warrants this week are due to improving demand from China or stockpiling.

Click here to access the full article from the Mining Journal