Singapore, September 26 News: Three-month copper on the London Metal Exchange rose 10 US dollars in Asian markets on Monday, but it was not able to touch the record level hit last week because Hurricane Rita did not bring much impact on US oil refineries. The price dropped.
Copper prices have risen by 28% in the past year as investment funds have entered the commodity market. Last week its price rose by 6.1%, following the rise in crude oil prices.
LME three-month copper was quoted at US$3,735/ton-3,740/ton in Asian markets on Monday. Last Friday, it hit a record level of $3,795/ton in the London market, but it fell in late trading and ended at $3,725.
A Tokyo futures dealer said: “Some market participants expect the price to reach US$4,000, but it is difficult to see prices today at that level because crude oil prices have already fallen and the dollar is still strong.â€
The price of US crude oil has fallen by nearly one US dollar because Houston's refineries avoided the damage caused by Hurricane Rita, although factories in eastern Texas and Louisiana were further damaged by the storm.
As the oil price fell, the U.S. dollar/European round price hit a two-month high, alleviating concerns that energy prices may affect U.S. consumer spending. However, the U.S. dollar/Yen-yen declined, due to the recovery of information from large Japanese manufacturers.
Another Tokyo dealer said: "The copper market does not show traders' interest in buying and selling."
Chinese imports
China’s demand for copper has already supported prices.
The data released by the General Administration of Customs on Monday showed that China's refined copper imports increased by 12.2% from January to August.
However, the price increase has affected China's demand for spot copper.
A trader in Singapore said: "I already feel that the market will make a slight respite. The fund has injected a lot of money, but the volume is very small."
Shanghai copper was lightly traded. The December copper price rose by 10 yuan to 35,370 yuan/ton from the settlement price on Friday. Friday’s inventory weekly report showed that copper inventories fell by 28% to 32,883 tons.
The LME copper stocks increased by 625 to 84,300 tons on Friday, more than three times the 31-year low hit in late July.
The data released today by the General Administration of Customs also showed that China’s aluminum export volume increased by 17.2% year-on-year from January to August this year, but monthly export volume decreased due to Beijing’s implementation of the new tax policy.
LME aluminum three-month report 1,860 US dollars / ton -1,864 US dollars / ton, last Friday in London to close to 1,858 US dollars.
LME three-month lead reported at 910 US dollars / ton -915 US dollars / ton; three-month zinc reported 1,409 US dollars / ton -1,414 US dollars / ton.
Nickel and Tin have not yet been traded.
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