Copper hit a record high on Tuesday nearing $10,000 a tonne, buoyed by positive US economic data as well as supply concerns, while a weaker dollar underpinned its advance. Three-month copper on the London Metal Exchange closed at $9,945 a tonne from $9,745 at Monday's close. The metal used in power and construction earlier hit a record $9,955 a tonne.
A slew of improving economic data that suggested the global economic recovery was gathering steam, and a backdrop of constrained supply and fresh month fund allocation fuelled copper's advance, analysts and traders said. Tin hit a record $30,400 a tonne before subsiding to finish at $30,155 versus Monday's close of $30,100. Prices are up more than 10 percent this year, boosted by worries about supplies from top exporter Indonesia.
Prices tend to gravitate towards large pools of open interest ahead of options expiry as positions are covered. Falling copper stocks in LME warehouses underlined supply concerns. Latest data showed they fell 100 tonnes to 393,925 tonnes. Nickel hit its highest since May 2008 at $28,120 a tonne - and was last at $27,950 a tonne from $27,350.
Aluminium rose to its highest since September 2008 at $2,570 a tonne. It wound up at $2,551 from $2,519. Battery material lead was untraded but quoted at $2,535/2,540 from $2,510 a tonne. The metal has in recent weeks come under pressure from stocks in LME warehouses, which at 282,700 are at their highest since 1995.
The premium for cash material over the benchmark is at around $80 a tonne, its highest since October 2007 and compares with a discount in December, highlighting a lack of available nearby supply. It settled at $92.50 on Monday. Zinc was untraded but quoted at $2,472/2,473 a tonne versus Monday's close of $2,427 a tonne.
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