Shanghai copper futures rallied more than 3 percent on Thursday after gains in London futures, firm equity markets and positive comments from the world's largest miner on the outlook for commodities.
The surge in copper was outpaced by gains in nickel, lead and tin, which gained between 4 and 5 percent.
Shanghai's most active November copper was up 3.3 percent or 2,060 yuan at 65,070 yuan a tonne at the close. Spot copper in Shanghai also rallied sharply, up 1,475 yuan, at between 64,900 and and 65,100 yuan.
Copper for delivery for three months on the London Metal Exchange gained $105 to $7,255 a tonne at 0736 GMT after a 2.5 percent rally in the previous session.
"Metals look a little toppy and I am not sure they really deserve the gains we are seeing. I think there was some short covering out of China and Japan early on, and now we should start to see a little scale-up selling," an
LME trader in Hong Kong said.
Shares in BHP Billiton , which posted a 19 percent jump in second-half earnings on Wednesday, were up 6.5 percent in Australia, and the company said the outlook for commodities was bright.
"Recent discussions with our customers have indicated that they do not expect the volatility in the U.S. and European credit markets to have a material impact on raw material demand," BHP said in a statement.
Fundamentals remained positive following strong Chinese import data on Wednesday and as a three-week old strike at the Cananea mine in Mexico continues.
An official at Cananea's owner, Grupo Mexico, said the company had warned customers that they should be prepared in case it was unable to deliver against contracts, but it had yet to declare force majeure.
Workers and management are to meet on Friday for the latest round of talks on resolving the strike, ostensibly about safety and contracts.
NICKEL CHARGES HIGHER
Nickel was up $1,000 at $29,000, following Wednesday's 3 percent rise, earlier prices hit $29,500.
"It looks there there are customers out there who are looking for metal and were willing to pay the price. But it could be a touch overdone and prices may ease again when London opens," the
LME dealer in Hong Kong said.
Nickel prices have fallen precipitously from a record high of $51,800 in May, prompting stainless steel makers, the main users of nickel, to restock in anticipation of a pick-up in consumer demand later this year.
In industry news, the Ambatovy nickel and cobalt project in Madagascar has secured $2.1 billion in financing, said Japanese trading house Sumitomo Corp. which has a 27.5 percent stake in the venture.
Production at the mine will start in 2010 and by the time it hits full capacity early in 2013, annual output was expected to be 60,000 tonnes of nickel, 5,600 tonnes of cobalt and 190,000 tonnes of ammonium sulphate
Lead rose $125 to $3,105 on declining net exports from China and problems at the Doe Run smelter in the United States.
Doe Run's smelter at Herculaneum, Missouri, will be shut for a week to 10 days, because of furnace failures and shipments to its customers would be delayed.
LME warehouse stocks fell to 26,675 tonnes, just over one day of global consumption and their lowest since March 1990, despite a 24,600-tonne surplus in the first half of 2007, according to the International Lead and Zinc Study Group.
LME tin (MSN3: Quote, Profile, Research) touched $15,100 in electronic dealing, taking prices above the threshold set by Indonesian producer PT Timah to conduct spot metal sales.
Shanghai aluminium was up 160 yuan at 19,480.
LME aluminium gained $30 to $2,545. Sentiment was supported by comments from Alcoa Inc. (AA.N: Quote, Profile, Research) saying it would keep production at its 1.4 million tonne Jamalco alumina refinery in Jamaica shut while it assesses damage caused by Hurricane Dean and had declared force majeure.
豫公网安备41010502003434号