London Metal Exchange (LME) copper and zinc lifted the complex higher on Thursday by charging up to new record highs on fund buying, dealers said. "It is go-go-go for the end of the quarter and end of the month - you just can't stop it," a fund source said.
Three-month copper ended the kerb at a new record high of $5,420 a tonne on Thursday, $80 higher. The late trend helped other metals, which were lower earlier, to close in positive terrain. Lead erased losses and closed at $1,223, up $13. Earlier it recorded a recent low at $1,171.
"The markets are so fickle at the moment, with money chasing hot markets and getting out of the cold ones," a dealer said.
A Man Financial report said that fund buying was without doubt pushing the copper and zinc higher, but because of the low volumes gains are being exaggerated, pointing to Wednesday's copper volume of 80,000 lots.
Copper prices were underpinned by firm precious metals and possible supply disruptions at the La Caridad mine in Mexico. Southern Copper Corp said on Wednesday that if the strike continues for four more days it could hurt production.
Supply issues in Indonesia and a possible strike at Zambia's Kansanshi copper mine, had also boosted prices.
"With all these issues (supply side) rumbling away, it is not surprising that the market is up here," an analyst said.
Norddeutsche Affinerie, Europe's largest copper producer, said on Thursday it expected current high copper prices to continue, but warned this would increase the potential for substitution.
Zinc ended at $2,674, up $61 after touching a new all-time high of $2,678 on Select. LME zinc stocks fell 3,675 tonnes to 286,750 on Thursday - their lowest since June 2001.
Aluminium closed at $2,534 up from $2,519. On a positive note, the US Aluminium Association reported that demand (shipments) for aluminium in North America rose 2 percent year-on-year in January and by 8.8 percent from the previous month, according to a Barclays Capital report. Nickel ended the kerb at $15,450, up $395. Lead ended $13 higher at $1,223 and tin rose to $8,275 from $8,225.
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