Copper struck a record high at $10,000 on Thursday while tin also hit all-time peaks, on supply deficit concerns and as recent economic data from top consumers China and the United States increased demand prospects. But copper eased to a day's low of $9,890 a tonne, after a slew of upbeat US data and hawkish comments from European Central Bank President Jean-Claude Trichet lifted the US dollar versus the euro, deterring European investors.
Three-month copper on the London Metal Exchange closed at $9,930 a tonne against $9,945 at Wednesday's close, and trading was muted due to the week-long Lunar New Year holiday in China. "A lot of the data that's come out today has been supportive for commodities," said Daniel Smith, an analyst at Standard Chartered. "It's all telling us the macro picture's pretty strong globally."
Tin hit a record $30,920 a tonne, versus Wednesday's close of $30,650, later closing at $30,545. Economic data from the United States, Europe and China this week suggested a brighter economic outlook in top metal consumers and increased investor appetite for copper.
A raft of US data boosting sentiment showed better-than-expected weekly jobs figures, non-farm productivity growing faster than expected in the fourth quarter, a rise in new orders received by factories in December and stronger shipments of finished products. The copper market will see a deficit of 444,000 tonnes this year, according to a Reuters poll. That compares with a deficit of 180,000 tonnes seen in the July survey.
Tin, meanwhile, was helped by copper's rise and output constraints in top exporter Indonesia while demand from the electronic and industrial sectors is growing. "The picture for tin is very positive this year," said Gayle Berry, an analyst at Barclays Capital. "Supply growth is going to be anaemic." Copper's ascent comes despite rising inventories of the metal used in power and construction.
LME copper stocks rose 700 tonnes to 394,475 tonnes, data showed on Thursday. Stocks have risen by almost 50,000 tonnes since December 9 but remain considerably lower than February 2010's level of about 555,000 tonnes. "Copper stocks are stabilising but they will come down once China comes back from the holiday," VTB Capital analyst Andrey Kryuchenkov said of China's New Year holiday.
Battery material lead closed at $2,554.5 from $2,560 a tonne at the close on Wednesday. It came under pressure from stocks in LME warehouses, which at 288,925 tonnes were at their highest level since April 1995. Highlighting a lack of available nearby supply, the premium for cash lead over the benchmark was at around $80 a tonne, up from $73 at the close on Wednesday and compared with a discount in December. Aluminium was at $2,528 a tonne from $2,525 at the close on Wednesday and zinc was at $2,472 a tonne from $2,475. Nickel was at $28,040 a tonne from $28,000.
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