Copper Prices Rally As Chinese Demand Soar

Chinese demand increase brought a rally in Copper prices, on MCX Copper prices gained Rs 10.45 to close at Rs 271.30 per kg. On the London Metal Exchange, copper for delivery in three months gained $285 to $6830 a metric ton. The metal reached a record $8,800 a ton in May 2006. Stockpiles monitored by the Shanghai Futures Exchange dropped for a sixth straight week to 25,722 metric tons, the lowest since February. Chinese copper use jumped 38 percent in the nine months ended Sept. 30, the International Copper Study Group said yesterday.

LME inventories showed a increase of 2650 tonnes in Copper to 198325 tonnes.

In a report released, Production of primary aluminium in the world outside of China grew by 3.8% year-on-year to 22.64 million tonnes in Jan-Nov 2007, according to the latest preliminary figures released by the International Aluminium Institute (IAI). That growth rate looks very subdued relative to what is going on in China but it has doubled from last year’s 1.7% and daily average production hit a new record of 69,200t in November itself.

Aluminum inventories bounded by 2050 tonnes to 928525 tonnes. Aluminum was now at $ 2417 per tonne. Aluminum MCX near month contract was trading at Rs 95.55 per Kg at the closing. Supports for the contract are at 94.95 levels.

Among othe inventories Nickel and Lead derailed by 120 and 100 tonnes respectively while Zinc depleted by 25 tonnes.