26 May 2011
THE copper prices in London went up yesterday, widening gains from the previous session after a three per cent downhill earlier in the week, although fears about a spreading debt crisis in Europe and slower Chinese demand may counter the rise.
According to Reuters, the price of copper for delivery in three months on the London Metal Exchange (LME) rose by 0.5 per cent to $8,899.75 per tonne while the price of the most-active August copper contract on the Shanghai Futures Exchange soared by 0.2 per cent to 66,520 yuan, also extending gains from the previous session.
Copper gained despite a stronger dollar, pointing to a technical rebound after LME copper’s drop below a key 200-day moving average on Monday fed its three per cent slide.
Investment bank, Goldman Sachs urged clients to open long positions in copper and zinc in a report on Tuesday, citing recent signs of bullish demand from China.
The world copper market had a 60,000 tonne deficit in January to February compared with a surplus of 119,000 tonnes in the same period last year, the International Copper Study Group said in a monthly report.
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Copper Prices up