Copper at record high as dollar, demand support

Copper rose to a record high on Wednesday as the dollar weakened, positive earnings expectations whetted risk appetite and the outlook for demand for industrial metals in top consumer China improved. Benchmark copper on London Metal Exchange hit a record at $9,781 a tonne. The metal, used in power and construction, was at $9,755.5 a tonne in rings, up from $9,700 a tonne at the close on Tuesday.

Inventories of copper in London Metal Exchange warehouses continued to rise, up 3,825 tonnes at 38,175 tonnes. Lead stocks also rose, touching their highest since May 1995, at 261,925 after the latest inflow of 17,975 tonnes of material. Fundamentals for lead and zinc were not as good as for copper, Briesemann said. But he added: "The international lead and zinc study group is to release new demand data for January-November 2010 and I expect it will show a huge surplus again." Lead was $2,617 a tonne in rings, versus Tuesday's close at $2,623.5. Nickel was $26,175 a tonne in rings from $26,100, supported by strong fundamentals. Zinc was $2,442.5 a tonne in rings from $2,436, tin was $27,055 from $26,925 and aluminium was at $2,468 from $2,450 a tonne.