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RTRS:METALS-Copper near 6-week high, China recovery hopes support
 
By Silvia Antonioli and Manolo Serapio Jr
LONDON/SINGAPORE, Dec 4 (Reuters) - Copper was little changed on Tuesday,
hovering near a six-week high hit the previous session on optimism that top
copper consumer China is on the road to recovery, but concern over U.S. economic
and fiscal issues kept prices in check.
Benchmark copper on the London Metal Exchange was at $8,025 a tonne
by 1002 GMT, 0.25 percent up from Monday's close at $8,005.
The metal, used in power and construction, hit its highest level since Oct.
19 at $8,045 on Monday, after data showed the pace of activity in China's
manufacturing sector quickened for the first time in 13 months in November,
adding to evidence its economy is reviving.
China consumes about 40 percent of the global copper supply.
Copper prices then lost some ground after data showed the U.S. manufacturing
sector had unexpectedly contracted in November, falling to its lowest in over
three years.
"The Chinese manufacturing data was well received but the U.S. data was
below expectations which is what took us down later on yesterday and earlier
today," said metals analyst Ivan Szpakowski at Credit Suisse.
"But we think copper is going to continue to rally in the next couple of
months as from here on we should see some macro improvement. We see China
getting better and we think there is good potential for restocking activity both
in the U.S. and in Europe."

FISCAL CLIFF
From now to the end of the year, investor focus will be on U.S. efforts to
avoid a combination of spending cuts and tax increases due in early 2013 that
may cut the federal budget deficit but also tip the economy back into recession.
Any kind of successful resolution to the fiscal issue would unleash a
significant inflow of money into risk assets including commodity and base
metals, according to analysts.
INTL FCStone analyst Edward Meir believes a deal among U.S. lawmakers is
highly likely.
"While there may be occasional setbacks, we still expect an ultimate
agreement, leading to a firmer tone in practically all markets heading into
year-end," Meir said in a note.
High inventories of copper in Asia and a looming increase in global copper
supply in 2013, however, are likely to contain gains.
Copper stocks in China's bonded warehouses hit a record high of more than 1
million tonnes in November and are expected to rise by a further 100,000 tonnes
by the end of the year due to weak domestic demand, traders said.

In other metals, aluminium was at $2,106 from $2,120 while battery
material lead was at $2,243 from $2,256.
Tin was at $21,800 from $21,855 while zinc, was at $2,026
from $2,040 Monday's close.
Nickel was at $17,439 from $17,500.

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 2011 Ytd Pct
move
COMEX Cu 364.55 -0.25 -0.07 344.75 5.74
LME Alum 2106.25 -13.75 -0.65 2020.00 4.27
LME Cu 8025.75 20.75 +0.26 7600.00 5.60
LME Lead 2244.25 -11.75 -0.52 2034.00 10.34
LME Nickel 17421.00 -79.00 -0.45 18650.00 -6.59
LME Tin 21800.00 -55.00 -0.25 19200.00 13.54
LME Zinc 2028.00 -12.00 -0.59 1845.00 9.92
SHFE Alu 15395.00 -65.00 -0.42 15845.00 -2.84
SHFE Cu* 57250.00 -270.00 -0.47 55360.00 3.41
SHFE Zin 15290.00 -145.00 -0.94 14795.00 3.35
** Benchmark month for COMEX copper
* 3rd contract month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07
Source