US copper futures climbed to their highest level since mid-November in morning business on Tuesday, with broader sector strength underpinning the industrial metal's early advance, traders said.
"I think copper is just seeing sector strength right now from a general buy into all things commodity today," said Zachary Oxman, senior trader with Wisdom Financial in Newport Beach, California, referring to the re-balancing of commodity indexes. "It just looks like a big buy across the board in commodities. I think gold will hold, but I don't see copper holding."
Copper for March delivery was trading up 9.90 cents, or 3.15 percent, to $3.24 a lb by 10:33 am EST (1533 GMT) on the New York Mercantile Exchange's COMEX division, easing back from an earlier session peak of $3.2750, its highest since November 15.
Volumes were estimated at 11,082 lots by 10:00 am. The re-balancing of indexes involves selling assets that have registered healthy gains, and buying those that have underperformed.
Despite copper's early burst higher, ever-present concerns in the market that a global economic slowdown will impact future demand growth will likely keep the industrial metal on the defensive, longer-term. A firmer tone in both Asian and London copper markets overnight fed into the early strength in New York, traders said.
Copper gained more than 1 percent in Shanghai and London on Tuesday, buoyed by tightness in the world's biggest consumer, China, but spot premiums in China are easing, which in turn may undermine futures markets.
Comments
Comments are closed.