RTRS:METALS-Copper rises to 4-month high on IMF hopes, euro
* IMF seeks $600 bln in new funds
* Copper stocks in LME warehouses fall to fresh 13-mth low
* COMING UP: U.S. CPI for Dec 1330 GMT
By Harpreet Bhal
LONDON, Jan 19 (Reuters) - Copper rose to a four-month high on
Thursday, spurred by hope the International Monetary Fund will boost its
resources to help combat the euro zone debt crisis, and optimism that demand for
metal will hold up as U.S. economic prospects brighten.
Benchmark copper on the London Metal Exchange (LME) rose 1.7 percent
to $8,378.75 a tonne by 1001 GMT, from a close of $8,235 on Wednesday.
Earlier in the session the metal used in power and construction rose to its
highest level since Sept. 20 at $8,410 a tonne.
"The market is trading on a stronger footing today after gains in equity
markets and positive macroeconomic data from the United States," said Daniel
Briesemann, analyst at Commerzbank, referring to upbeat U.S. factory output data
released on Wednesday.
"We are continuing to see robust global demand against the backdrop of a
debt crisis in the euro zone... and that is remarkable."
Financial markets were boosted by news the IMF is seeking to more than
double its war chest by raising $600 billion to help the euro zone pull out of
its two-year-old sovereign debt crisis.
Also helping gains in metals prices was a stronger euro, which hit a
two-week high against the dollar. A weak dollar makes commodities priced in the
U.S. unit cheaper for holders of other currencies.
Optimism gathered pace that Greece would reach an agreement with its
creditors as the indebted country enters a second day of bargaining on a crucial
bond swap deal.
"The market is more focused on the uncertainty about the Greek crisis rather
than fundamentals (for metals). We still have to wait and see how the
negotiations regarding the Greek debt plays out," Briesemann said.
Copper prices fell by around 21 percent last year, the first annual drop
since 2008, as an uncertain global economic outlook raised fears about the
metal's demand prospects.
The metal is trading 10 percent higher so far this month.
FALLING STOCKS
Copper stocks in LME-registered warehouses continued to show a falling
trend, dropping by 1,300 tonnes to a fresh 13-month low of 351,200 tonnes
In industry news, Pan Pacific Copper, Japan's biggest copper
smelter, said on Thursday it had recently received copper concentrate shipments
from Freeport-McMoRan Copper & Gold Grasberg mine in Indonesia after a
three-month strike at the mine ended in December.
"Similar to other raw materials, the focus is currently on supply related
news. In this context, copper stands out in particular," Credit Suisse said in a
note.
Aurubis AG, Europe's largest copper producer, warned of slowing
demand and price volatility on Thursday although its profits were up 84 percent
in its last financial year.
"Price volatility is to be expected ... We expect uncertainty in the further
demand trend in our copper product sales," the company said, while also saying
there was good cause to expect metal prices to remain high.
In other metals, aluminium rose to $2,225 from a close of $2,204 a
tonne on Wednesday.
Zinc, used in galvanising, climbed to $2,027 from a close of $2,001,
while tin was at $21,950 from $21,780.
Battery material lead rose to $2,161.25 from $2,139 and stainless
steel ingredient nickel climbed to $19,743 from a close of $19,495.
Metal Prices at 1003 GMT
Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T
Metal Last Change Pct Move End 2010 Ytd Pct
move
COMEX Cu 380.90 5.95 +1.59 444.70 -14.35
LME Alum 2225.25 21.25 +0.96 2470.00 -9.91
LME Cu 8376.25 141.25 +1.72 9600.00 -12.75
LME Lead 2163.25 24.25 +1.13 2550.00 -15.17
LME Nickel 19731.00 236.00 +1.21 24750.00 -20.28
LME Tin 21801.00 21.00 +0.10 26900.00 -18.96
LME Zinc 2027.75 26.75 +1.34 2454.00 -17.37
SHFE Alu 16365.00 -5.00 -0.03 16840.00 -2.82
SHFE Cu* 60560.00 1110.00 +1.87 71850.00 -15.71
SHFE Zin 15660.00 155.00 +1.00 19475.00 -19.59
** Benchmark month for COMEX copper
* 3rd contract month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07