Copper rose on Tuesday as the dollar fell and on signs demand could be improving in top metals consumer China as well as in Europe, while focus shifted to US elections and a Federal Reserve meeting. Three-month copper on the London Metal Exchange closed at $8,435 a tonne, up from a close of $8,300 on Monday.
-- Aluminium prices near highest since late April
The metal used in power and construction closed up over 1.5 percent, but remains below last month's highs of $8,554, which was the highest since July, 2008. Aluminium also finished up over 2 percent, nearing the highest level since late April. Investors eyed the US Federal Open Market Committee, which on Tuesday begins a two-day meeting on interest rate policy in Washington.
Markets anticipated the Fed would announce further quantitative easing of around $80 billion to $100 billion a month. The total liquidity injection is forecast between $250 billion and $2 trillion. Open interest in LME copper and lead reached new highs in October, while aluminium open interest was well below recent highs, and zinc open interest has been in decline since early June.
Aluminium ended at $2,430 a tonne from $2,372. It is closing in on its five-month peaks from mid-October at $2,459. Zinc was at $2,453 a tonne from $2,449. Stocks of zinc at LME warehouses rose by 4,225 tonnes to 632,225 tonnes, the highest since January 2005, LME data showed. Battery material lead was at $2,485 a tonne from $2,465 a tonne. LME lead inventories jumped 2,725 tonnes to their highest in more than ten years, above 200,000. Tin closed at $25,800 a tonne from $25,600 a tonne and nickel finished at $23,475 a tonne from $23,245.
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