Copper prices advance on China demand hopes

The price of copper was a bit higher Monday, on comments which indicated that demand in China will continue and on hopes that the US Federal Reserve will do more to help the US economy after last week’s disappointing jobs report.

A Chinese government economist said that his nation’s economy will be strong in the second half of the year and that it will see 10 percent to 11 percent growth for the full year, raising hopes that demand for copper there will remain healthy.

A weak US dollar also helped support prices, overcoming concerns that demand could falter in the United States.

September copper added less than a cent to $3.35 per pound in New York trade, while three-month contracts were $55 higher to $7,425 per tonne after going as high as $7,489 per tonne earlier in the session on the London Metal Exchange.

Inventories in LME-monitored warehouses dropped another 2,150 tonnes.

Aluminium dropped $8 to $2,182 per tonne in London trade after BNP Paribas predicted a 2.2 million tonne surplus for the metal this year, more than last year’s overage, with the decline coming even though LME-monitored stockpiles dropped by 6,025 tonnes.

Zinc added $21 to $2,150 per tonne while lead was up $25 to $2,200 per tonne and nickel gained $725 to $20,800 per tonne.

Tin was untraded at the close, but last bids were up $575 to $21,300 per tonne.

Prices for gold and silver were lower in New York trade, with December gold dropping $2.70 to $1,202.60 per troy ounce while September silver was down 20 cents to $18.27 per troy ounce.