Copper futures prices extended their gains on Thursday after roaring above $8,000 a tonne this week due to mounting global supply concerns. Copper for delivery in three months on the London Metal Exchange was $30 higher at $8,070 a tonne.
The looming shortage, said by sector analysts to be most acute in top consumer China, had largely depleted industry stockpiles as consumers and investors scooped up available metal.
"There isn't a lot of copper around and that's why the price keeps going up," a trader said. Copper cost more than $8,000 a tonne this week for the first time since August 10.
The metal sold for a record $8,800 a tonne in May, double the price at the start of the year. Shanghai Futures Exchange active November ended the session 960 yuan higher at 74,860 yuan ($9,420) a tonne. On Wednesday, the contract hit the upper limit of the exchange-imposed, 4-percent price cap.
Funds' enthusiasm for copper was tempered by a report late on Wednesday that the world's largest copper mine, Chile's Escondida, is on track to return to full production this week, after the end of a 25-day strike that resulted in 3,500 tonnes of lost production daily.
China consumes around three times that amount a day. In electronic trade, the most active December copper contract was up 0.05 cents to $3.6800 a lb on the New York Mercantile Exchange's Comex division.
Three-month zinc shed $20 to $3,695 a tonne on some profit taking after gaining $100 in the last LME session, helped higher by declining exchange stocks.
"Zinc is our most favoured base metal and the only one likely to average more next year than in the current one," BNP Paribas commodities strategist David Thurtell said in a note.
Latest data shows LME inventories fell to 167,825 tonnes, down by 550, there lowest since 1992. "Zinc stocks are falling rapidly, and supply isn't likely to catch up with demand until 2008," Thurtell said.
Three-month lead recoiled $10 to $1,330 after rising by as much as 4.7 percent on Wednesday to its highest price since February on expectations of rising global demand.
Demand for lead comes almost solely from carmakers, which equip their vehicles with lead-acid batteries. A proliferation of diesel-powered cars and more electronic devices on the dashboard requiring bigger batteries are increasing demand for the metal, according to commodities analysts.
Comments
Comments are closed.