Inventory gains send copper, aluminium prices lower

More gains in inventories of copper and aluminium in London Metal Exchange warehouses along with continuing worries about demand sent base metals prices lower Friday.

LME copper stockpiles were up 6,775 tonnes on the session to 230,060 tonnes to their highest level in four and a half years, while aluminium inventories added 1,150 tonnes during the day to 1.5 million tonnes.

December copper was down 9 cents to $1.81 per pound in midday trade in New York, while at late afternoon in London three-month copper had dropped $210 to $4,000 per tonne after going as low as $3,832 per tonne.

At the same time, aluminium traded down $40 to $2,025 per tonne after trading as low as $1,997 per tonne earlier.

In other metals with industrial uses, zinc was down $12 to $1,148 in late afternoon trade in London, while lead fell $59 to $1,461 per tonne, nickel was $205 lower to $11,695 per tonne and tin dropped $900 to trade at $13,700 per tonne.

Meanwhile, December gold was down $13.50 to $725 per troy ounce just past noon in New York, pushed lower by a dollar that was stronger versus the euro and the pound.