LME stockpile declines boost copper prices

Copper prices were helped Thursday after most global equities markets saw gains and declines in inventories after stockpiles in London Metal Exchange warehouses fell by 5,675 tonnes during the session, the fourteenth straight declines in storage.

Both the equities gains and falling stockpiles encouraged sentiment that the worst of the recession is over and that demand for the metal used in construction and manufacturing will increase.

July copper was up 4 cents to $2.05 per pound in New York trade, while three-month copper added $98.75 to $4,468.75 per tonne in London.

Gains for copper were likely held in check by expectations, later realized, that automobile manufacturer Chrysler would file for bankruptcy protection.

On the other hand, precious metals prices were lower on the session.

June gold was down $9.30 to $891.20 per troy ounce while July silver fell 45 cents to $12.33 per troy ounce and July platinum dropped 20 cents to $1,106.60 per troy ounce.