AIRLINK 188.50 Decreased By ▼ -8.15 (-4.14%)
BOP 10.17 Increased By ▲ 0.03 (0.3%)
CNERGY 6.61 Decreased By ▼ -0.08 (-1.2%)
FCCL 34.03 Increased By ▲ 1.01 (3.06%)
FFL 16.60 Decreased By ▼ -0.05 (-0.3%)
FLYNG 24.16 Increased By ▲ 1.71 (7.62%)
HUBC 126.20 Decreased By ▼ -1.09 (-0.86%)
HUMNL 13.82 Decreased By ▼ -0.08 (-0.58%)
KEL 4.82 Increased By ▲ 0.06 (1.26%)
KOSM 6.50 Increased By ▲ 0.13 (2.04%)
MLCF 43.19 Increased By ▲ 0.97 (2.3%)
OGDC 213.00 Decreased By ▼ -0.03 (-0.01%)
PACE 7.30 Increased By ▲ 0.29 (4.14%)
PAEL 42.19 Increased By ▲ 1.32 (3.23%)
PIAHCLA 17.47 Increased By ▲ 0.65 (3.86%)
PIBTL 8.43 Increased By ▲ 0.14 (1.69%)
POWER 9.00 Increased By ▲ 0.18 (2.04%)
PPL 184.90 Increased By ▲ 1.33 (0.72%)
PRL 38.02 Decreased By ▼ -0.25 (-0.65%)
PTC 24.25 Increased By ▲ 0.18 (0.75%)
SEARL 94.75 Decreased By ▼ -0.36 (-0.38%)
SILK 1.00 No Change ▼ 0.00 (0%)
SSGC 39.60 Decreased By ▼ -0.71 (-1.76%)
SYM 17.89 Decreased By ▼ -0.32 (-1.76%)
TELE 8.73 No Change ▼ 0.00 (0%)
TPLP 12.50 Increased By ▲ 0.29 (2.38%)
TRG 63.90 Decreased By ▼ -0.46 (-0.71%)
WAVESAPP 10.50 Increased By ▲ 0.06 (0.57%)
WTL 1.79 No Change ▼ 0.00 (0%)
YOUW 3.98 Decreased By ▼ -0.02 (-0.5%)
BR100 11,721 Decreased By -1.9 (-0.02%)
BR30 35,442 Increased By 83 (0.23%)
KSE100 113,073 Increased By 434.6 (0.39%)
KSE30 35,576 Increased By 117.9 (0.33%)

Copper surged 3 percent to hit 4-1/2 month highs on Thursday, boosted by a rise in US durable goods orders and a jump in new home sales which lifted the outlook for the economy and demand. London Metal Exchange copper for three-month delivery rose to close at $4,085 a tonne versus Wednesdays close of $3,990.
Prices for the metal used in the power and construction industries earlier matched Mondays 4-1/2 month high of $4,135. "Yesterdays data gave investors some hope that the economy may be bottoming out," said BNP Paribas analyst Michael Widmer. The demand picture for metals improved on Wednesday after new orders for long-lasting US-made goods rose in February for the first time in seven months and new home sales rebounded.
Analysts said copper was also bolstered by arbitrage buying on Thursday - where prices in Shanghai are at a premium to prices on the London Metal Exchange. Tempering positive sentiment, copper inventories in London rose by 225 tonnes to 503,900 tonnes. "Were seeing these market rallies clearly based on improvements of economic news coming out," Charles Cooper, mining analyst at Evolution Securities, said.
Aluminium prices also got a lift after reports that China will increase tax rebates on exports of certain aluminium products, expanding export market potential for the worlds biggest producer of the metal used in transport and packaging. The tax rebate on some Chinese aluminium products is likely to rise to 13 percent. Analysts at Barclays Capital said news of the tax rebate had boosted aluminium prices in Shanghai to a record premium of $550 a tonne over prices on the LME.
The move, together with purchases by Chinas Strategic Reserves Bureau, may prompt Chinese aluminium smelters to re-accelerate production and add to oversupply. "An increase in the rebate would help to boost exports which would help to stimulate Chinese consumption of primary metal and export the surplus," said Barclays Capital analysts. However, they cautioned that global demand for the metal remains weak, leaving a reduced export market for China.
LME aluminium rose to $1,442 from $1,417. Aluminium stocks rose by 4,225 tonnes to hit a new record near 3.5 million tonnes. Zinc was at $1,348 from $1,295 a tonne. It hit a days high of $1,345 - its highest since early January. Battery material lead was at $1,320 from $1,295. Nickel was at $9,725 from $9,650, while tin was at $10,140 a tonne from $9,970.
The backwardation for tin - the premium for cash material over the three-month contract - was around $215 a tonne, down a touch from earlier this week, but up from $32.50 in early February. Traders said worries about a potential shortage of material for nearby delivery were behind the high backwardation. The shortage was probably because of a dominant position holding in LME stocks, traders said. According to the latest LME data, 90 percent of tin cash warrants are controlled by one entity.

Copyright Reuters, 2009

Comments

Comments are closed.