AGL 40.10 Decreased By ▼ -0.10 (-0.25%)
AIRLINK 129.80 Increased By ▲ 0.69 (0.53%)
BOP 6.34 Decreased By ▼ -0.26 (-3.94%)
CNERGY 4.14 Increased By ▲ 0.11 (2.73%)
DCL 8.73 Increased By ▲ 0.28 (3.31%)
DFML 42.42 Increased By ▲ 1.17 (2.84%)
DGKC 87.97 Increased By ▲ 0.97 (1.11%)
FCCL 33.76 Increased By ▲ 0.41 (1.23%)
FFBL 66.35 Increased By ▲ 0.45 (0.68%)
FFL 10.61 Increased By ▲ 0.07 (0.66%)
HUBC 112.70 Increased By ▲ 2.00 (1.81%)
HUMNL 15.81 Increased By ▲ 0.58 (3.81%)
KEL 4.75 Decreased By ▼ -0.03 (-0.63%)
KOSM 8.02 Increased By ▲ 0.19 (2.43%)
MLCF 42.00 Increased By ▲ 0.10 (0.24%)
NBP 61.00 Increased By ▲ 0.50 (0.83%)
OGDC 190.55 Increased By ▲ 7.75 (4.24%)
PAEL 25.70 Increased By ▲ 0.34 (1.34%)
PIBTL 7.26 Increased By ▲ 1.00 (15.97%)
PPL 149.75 Increased By ▲ 1.94 (1.31%)
PRL 25.23 Increased By ▲ 0.67 (2.73%)
PTC 16.45 Increased By ▲ 0.21 (1.29%)
SEARL 70.75 Increased By ▲ 0.25 (0.35%)
TELE 7.40 Increased By ▲ 0.10 (1.37%)
TOMCL 36.15 Decreased By ▼ -0.15 (-0.41%)
TPLP 8.06 Increased By ▲ 0.21 (2.68%)
TREET 16.60 Increased By ▲ 1.30 (8.5%)
TRG 51.51 Decreased By ▼ -0.19 (-0.37%)
UNITY 27.40 Increased By ▲ 0.05 (0.18%)
WTL 1.29 Increased By ▲ 0.06 (4.88%)
BR100 9,954 Increased By 111.9 (1.14%)
BR30 30,618 Increased By 582 (1.94%)
KSE100 93,415 Increased By 894.1 (0.97%)
KSE30 29,041 Increased By 254.4 (0.88%)

Copper rose on Thursday as concerns receded about potential monetary tightening in China, with investors regaining confidence demand would forge on in the world's top industrial metals consumer. Benchmark copper for three-months delivery on the London Metal Exchange traded at $7,530 a tonne at 1406 GMT, up from a close of $7,485 on Wednesday.
"The market seems to have digested concerns of tighter monetary policy and the impact that could have on demand, and is now continuing on the very strong upward trend it's been on for some time now," said Barclays Capital analyst Gayle Berry. Industrial metals fell earlier this week after China raised banks' reserve requirement ratios on Tuesday, with the move initially stoking concerns about potential rate hikes and a clamp-down on spending.
But investors later viewed China's step as a bullish reminder that the country's economy is powering ahead. "The reserves ratio (move) is not a major issue, the economy has its own momentum, China is going to achieve solid growth rates this year," said David Wilson, analyst at Societe Generale. Also supporting copper, the premium or arbitrage between Shanghai copper over the London benchmark was still wide enough to make imports attractive.
Chinese copper imports rose 27 percent in December as government stockpiling continued and the arbitrage between Shanghai and London opened up. The continuing rise in LME copper stocks is proving relentless and causing some worry for investors. Latest data showed LME stocks rose 2,200 tonnes to total 523,975 tonnes.
Stocks stand within reach of their 2009 peak, hit last February, when they touched their highest since late 2003. Also a worry, the European Union's nominee for chief financial watchdog said on Wednesday that speculation in commodity derivatives has been "scandalous" and needed to be regulated carefully.
Among other industrial metals, aluminium traded at $2,341.25 from $2,294. LME stocks of the metal used in transport and packaging fell 5,575 tonnes, standing at just under 4.6 million tonnes. Shares in Aluminium Corp of China Ltd (Chalco), the country's largest aluminium maker, rose on Thursday as investors bought into the recently battered stock, betting on higher aluminium prices.
Zinc traded at $2,545 from $2,489, while lead, used to make batteries, traded at $2,489 from $2,480. Soldering metal tin was at $18,400 from $18,000, while stainless steel making ingredient nickel traded at $18,530 from $18,300. LME nickel stocks rose 1,902 tonnes to total 161,550 tonnes, a new record, but analysts said markets are continuing to discount the stock rise.

Copyright Reuters, 2010

Comments

Comments are closed.