Copper prices climb on stockpile decline

Copper prices were higher in London Wednesday after stockpiles dropped in London Metal Exchange-monitored warehouses in Asia, indicating that top consumer China could be buying again.

Inventories in LME warehouses dropped by 1,125 tonnes during the session, the biggest one-session decline in nearly four months.

In late afternoon trade in London, three-month copper had added $52 to $3,237 per tonne.

After a decline to $1,314 per tonne, aluminium added $6 to $1,336 per tonne despite the fact that LME aluminium inventories are at a record high 3.09 million tonnes.

Demand for the metal used in construction and automobile manufacturing was down 8.1 percent in the US and Canada last year, according to an industry group, pushing chances up that more production cuts are coming.

The price of zinc also rose on the session, adding $10 to $1,120 per tonne, but nickel prices dropped $185 to $8,715 per tonne while lead was down $39 to $1,070 per tonne and tin was $27 lower to $10,773 per tonne.

Meanwhile, in New York trade, gold was up again as investors worried that the recession will get worse and looked to gold as a safe place to put their cash.

April gold was up $10.70 to $978.20 per troy ounce while March silver added 28 cents to $14.29 per troy ounce.