Base metals jump

Copper touched its highest in more than two years on Thursday, underpinned by a softer dollar and expectations of renewed demand from emerging markets but it dipped as pausing equity markets helped temper gains. Benchmark copper eased back from a 27-month peak of $8,490 a tonne to close at $8,400 a tonne, versus Wednesday's close of $8,362 a tonne.
"Metals track equities...and given the rally we've had over the last few weeks, it wouldn't be a surprise if metals paused for breath at the moment," Societe Generale analyst David Wilson said. Copper has rallied by around 40 percent since hitting a low in June and is only about $500 away from an all-time high of $8,940 a tonne struck in July 2008. "Emerging markets have been proven to be more than capable of being the locomotive when it comes from commodity demand," said David Thurtell of Citi.
Tin continues to print historic highs amid dwindling supply from the world's top exporter Indonesia due to heavy rains that have disrupted production and dwindling grades of ore. "The production problems in Indonesia, the world's second largest producer and largest exporter of tin, are increasing," Commerzbank said in a note.
The latest LME data showed that tin stocks held in LME-bonded warehouses rose by 135 tonnes net today, but they remain close to their lowest in almost one and a half years. Three month tin closed at $26,950 per tonne, having printed a new high of $27,338.50 earlier. Energy-intensive metal aluminium hit its highest since April at $2,459 per tonne before closing at $2,410 per tonne versus $2,417 on Wednesday's close.
Zinc, used in galvanising, closed at $2,415 per tonne, against a $2,410 close on Wednesday, having rallied to $2,444 also its highest in nearly six months earlier. Sister metal lead was untraded at the close but bid at $2,411 versus $2,435 per tonne at Wednesday's close. It printed its highest since January at $2,473 earlier. Nickel, used in stainless steel, closed at $24,305 per tonne against a $24,400 close on Wednesday.