BS: Copper Advances for Fourth Day in Asia as Inventories Shrink
Aug. 19 (Bloomberg) -- Copper gained for a fourth day, erasing earlier losses, as diminishing stockpiles improved the outlook for demand. Zinc and lead climbed.
Three-month copper on the London Metal Exchange gained as much as 0.9 percent to $7,458.25 a metric ton, the highest price since Aug. 9, and traded at $7,437 at 3:54 p.m. in Singapore, extending a 3.3 percent advance in the past three days. The November-delivery contract on the Shanghai Futures Exchange climbed as much as 0.6 percent to 58,360 yuan ($8,596) a ton, and settled at 58,260 yuan.
“We’re optimistic about demand picking up in the fourth quarter, which should see stockpiles decline further,” Sang Yongliang, an analyst at Guotai Junan Securities Co., said from Shanghai. “The concentrates market remains tight and this should continue to keep refined prices supported.”
Stockpiles tallied by the London Metal Exchange dropped for a fourth day to 403,300 tons yesterday, the lowest level since Nov. 13. Canceled warrants, or inventories earmarked for withdrawal, increased for a second day, expanding 13.2 percent.
Earlier, copper dropped as much as 0.5 percent as the dollar rose for the first day in four against a six-currency basket including the euro after Germany’s Der Spiegel reported tensions are rising in Greece as austerity measures shrink the economy. A stronger dollar boosts the cost of dollar-denominated commodities for holders of other currencies.
Aluminum in London rose 0.5 percent to $2,115.50 a ton, zinc was little changed at $2,136.50 a ton and lead climbed 0.6 percent to $2,136 a ton. Nickel advanced 0.5 percent to $22,000 a ton, while tin added 1.2 percent to $21,250 a ton.
--Editors: Matthew Oakley, Jarrett Banks.
To contact the reporter for this story: Glenys Sim in Singapore at sgsim4@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
