London Metal Exchange (LME) copper prices hit a new record high on Tuesday on fund buying, which also pushed lead to a fresh record high and zinc and aluminium to their highest in more than a decade, dealers said.
Three-months copper prices ended at $4,233 a tonne, up $22 from Monday's close but $24 off an earlier all-time high. "Copper caught fire and the other markets went with it," a dealer said.
"Sentiment is so positively strong at the moment that you wouldn't bet against $4,300 and even higher, but prices will have to first close the kerb above $4,250 and consolidate in the coming sessions."
Copper prices have persistently bounced off any dips, indicating more gains in a market that has risen by more than 30 percent since July, dealers said.
"The copper price remains in its relentless uptrend, still supported by the combination of low inventories, supply disruptions and robust demand," Barclays Capital analyst Ingrid Sternby said.
Edgy sentiment about a possible delivery against a potential large short position had also cemented positive sentiment.
"Tightness looks to be developing in the spreads around December 7, and accelerating from there," another dealer said.
Lead and zinc hit new price highs as fund buying in copper spilled over into other metals.
Zinc ended at $1,699/700, up $9 but $6 off an earlier 15-year high, while lead closed at $1,020, up $3 but $8 off an earlier contract record high.
Aluminium was quoted at $2,124, compared with $2,116 but off an earlier fresh 10-1/2-year high of $2,132.
The market peaked in February 1995 at $2,155.
Nickel was at $13,000, unchanged, while tin was at $6,080, down $20.