Copper up on inventories decline

Copper prices were higher Tuesday after inventories in London Metal Exchange warehouses fell again and as the dollar remained relatively weak.

Additionally, there was speculation that as much as a quarter of LME copper inventories – between 100,000 and 150,000 tonnes of the metal – could be bought up by China in the next three months.

May copper was up 9 cents to $1.60 per pound in New York, while in afternoon trade in London three-month copper gained $115 to $3,500 per tonne after LME-monitored warehouses dropped 5,800 tonnes of the metal used in construction and manufacturing.

Meanwhile, aluminium added $5 to $1,325 per tonne even though inventories jumped by 17,200 tones, adding to a record stockpiles of over 3.2 million tonnes.

Lead was up $27 to $1,055 per tonne while zinc added $33.75 to $1,134.75 per tonne and nickel gained $300 to $9,800 per tonne after going as high as $9,900 per tonne earlier in the session.

Tin dropped $35 to $10,640 per tonne.

Precious metals prices were lower as April gold fell $26.40 to $913.60 per troy ounce, May silver was down 36 cents to $12.72 per troy ounce and April platinum dropped $39.60 to $1,038.60 per troy ounce.