Copper prices up on data, despite expanding inventories

Copper prices rose Friday on optimism prompted by US data showing that the economy there didn’t contract as much as had been anticipated in the second quarter and that consumer spending was up in the US in July, with buyers not deterred by analyst warnings that prices could drop again with inventories up and demand languishing.

December copper was 8 cents higher to $2.95 per pound in New York trade, while three-month copper added $200 to $6,475 per tonne on the London Metal Exchange even though inventories in LME-monitored warehouses added 1,375 tonnes to 298,925 tonnes.

Prices for other base metals also rose.

Lead rose as high as $2,149 per tonne, the highest price in a year, before settling back to a gain of $97 to $2,107 per tonne on continuing worries over the possible closure of more smelters in China.

Aluminium gained $16 to $1,900 per tonne even though London inventories added 625 tonnes during the day, remaining above 4.6 million tonnes.

Zinc added $50 to $1,881 per tonne and tin jumped $105 to $14,100 per tonne despite gains in inventories to multi-year highs for both.

While nickel was untraded at the end of the session, it was up $275 to $19,030 in its last bids.

Precious metals prices were also up, with December gold adding $12.20 to $959.50 per troy ounce while December silver was 57 cents higher to $14.83 per troy ounce and October platinum gained $5.40 to $1,245.90 per troy ounce.