Copper dips as funds pause, demand seen rising

Copper eased on Tuesday, falling back from a 19-month high hit in the previous session, as funds stepped back ahead of the quarter-end and a slowdown in stock drawdowns highlighted the uncertain demand outlook. By 1006 GMT, copper for three-month delivery on the London Metal Exchange traded at $7,750 a tonne from $7,770 at the close on Monday. Copper, which is used in power and construction, touched a high at $7,800 a tonne on Monday, due to a weak dollar and falling inventories. A weak U.S. currency makes metals priced in dollars less expensive for holders of other currencies. London copper stocks have fallen 40,175 tonnes since mid-February when they peaked at their highest level since October 2003. On Tuesday, they fell 625 tonnes to 514,900 tonnes. Stocks of nickel fell 258 tonnes to a near three month low at 156,090 tonnes, down from record highs at 166,476 tonnes touched on February 5. LME data also showed two positions controlled between 40-50 percent of lead cash warrants. The discount between the cash and three-month contract, was at $29.50 a tonne, compared to $38.30 in mid-December. Zinc traded at $2,318 a tonne from $2,332 and tin was at $18,170 from $18,025.