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METALS-Copper up, tin record high, dlr helps, China eyed

Published 04/08/2011, 12:34 PM
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* Tin hits record high at $33,050

* Lead hits 3-year high, aluminium highest since Aug. 2008

(Updates with closing prices)

By Silvia Antonioli and Sue Thomas

LONDON, April 8 (Reuters) - Copper rose to its highest level in more than a month on Friday as a weaker dollar lifted the metal's appeal for holders of other currencies and ahead of trade data from China on Monday.

Three-month copper on the London Metal Exchange closed at $9,875 per tonne, up from a close of $9,670 on Thursday. Earlier, it touched $9,896 a tonne, its highest in more than a month.

Copper's gains were echoed through the base metals complex, with three-month tin on the London Metal Exchange hitting a record, lead at a three-year high and aluminium touching its highest since August 2008.

"It's an across-the-board surge in all the commodities. Gold, oil, they're all up. People are dumping the dollar and buying commodities," said MF Global senior commodity analyst Edward Meir.

"We are waiting for Monday when we get the Chinese import data for a variety of commodities and I think that should establish short-term direction."

China's copper, iron ore and coal imports in March are expected to rebound from multi-month lows posted in February, a holiday-shortened month.

"Positive sentiment is feeding through. Technical levels have been broken. A weaker dollar is also supporting copper," said Daniel Major, an analyst at RBS. "Investors' money is coming back into the sector after a risk aversion period."

Violence in Libya, political unrest in North Africa and the Middle East, and Japan's March 11 earthquake had hit consumers' confidence and eroded confidence in commodities perceived as risky such as base metals.

But optimism in global economic growth has since returned, lifting world shares to their highest level in more than three years, and leading to gains in commodities.

The euro rose to a 15-month high against the dollar, supported by expectations of more euro zone interest rate hikes. A weak dollar makes commodities priced in the U.S. unit cheaper for holders of other currencies.

STOCKS

But in signs demand for copper remains weak, inventories of the metal in London Metal Exchange warehouses rose 1,800 tonnes to 444,175 tonnes, their highest since July 2010, the latest data showed.

But data also showed a big fall in copper inventories in warehouses monitored by the Shanghai Futures Exchange, signalling improved demand in top consumer China.

"We have seen a decent outflow of stocks in Shanghai. It would suggest that post Chinese New Year buyers are coming back into the market," Major said.

Inventories of aluminium fell 2,700 tonnes on the London Metal Exchange to 4,581,775 tonnes, the latest data showed.

Aluminium closed at $2,713 from Thursday's $2,672 close, off its highest since August 2008 at $2,715 a tonne. Tin closed at a record $33,050 from $32,550.

Lead, which is used in batteries, hit a three-year high of $2,870 and closed at $2,850 from $2,790. Zinc, used in galvanizing, closed $2,532 from $2,453.

Nickel was $27,600 from $26,800.

Metal Prices at 1624 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Percent Move End 2010 Ytd Percent

move COMEX Cu 449.15 7.50 +1.70 444.70 1.00 LME Alum 2712.00 40.00 +1.50 2470.00 9.80 LME Cu 9874.00 204.00 +2.11 9600.00 2.85 LME Lead 2845.00 55.00 +1.97 2550.00 11.57 LME Nickel 27600.00 800.00 +2.99 24750.00 11.52 LME Tin 33050.00 500.00 +1.54 26900.00 22.86 LME Zinc 2534.00 81.00 +3.30 2454.00 3.26 SHFE Alu 16875.00 40.00 +0.24 16840.00 0.21 SHFE Cu* 73160.00 1470.00 +2.05 71850.00 1.82 SHFE Zin 18795.00 250.00 +1.35 19475.00 -3.49 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Editing by Alison Birrane)

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