Copper, zinc higher on London inventories

Copper dropped to its lowest price in almost two months on Thursday as inventories rose again and a US manufacturing survey showed that the sector expanded less than expected in October.

In New York, December copper fell 11 cents to $3.36 per pound, while three-month copper on the London Metal Exchange fell $220 to $7,500 per tonne as LME stockpiles of the metal rose to 167,000 tonnes, almost 30 percent higher than at the beginning of October.

Zinc inventories in LME warehouses have gained almost 30 percent just since last week as they have topped the 77,000-tonne level, sending zinc prices down $90 to $2,740 per tonne.

Among other base metals, aluminium dropped $4 to $2,541 per tonne after going as high as $2,567 during the day, while lead was $80 lower to $3,580 per tonne and tin fell $275 to $16,475 per tonne.

Only nickel showed a gain on the session, adding $400 to $32,400 per tonne on higher demand for use in the production of stainless steel in Asia.