Demand forecast sends copper, zinc prices to new record highs

Predictions of growth in demand from India’s mines ministry helped send copper and zinc prices to new record high prices on Wednesday. The ministry said that India’s copper consumption will maintain its present consumption growth of 7 to 8 percent for the next two years. The Asian nation’s zinc production was forecast to grow by 13.6 percent this year.

Three-month copper was up 2.3 percent to $5,677 per tonne and rose as high as a record $5,684 per tonne earlier in the day. An analyst report, however, said that liquidity was a problem in the market as prices have been rising steadily on very low volume from very few buyers.

Zinc hit a record price of $2,800 per tonne during the day and settled at an advance of 3.8 percent to $2,790 per tonne. Meanwhile, three-month lead dropped 0.6 percent to $1,152 per tonne.

Gold was slightly higher at $586.90 per troy ounce as traders said that continued weakness in the dollar could send its price above $600 per troy ounce. Silver was also slightly higher at $11.70 per troy ounce.

Platinum and palladium dropped slightly. Platinum traded at $1,067 per troy ounce, while palladium was at $334 per troy ounce.