Copper prices gain on more inventory declines

Metals prices were mixed Wednesday as copper and gold saw gains, but most other metals prices declined in New York and London trade.

September copper added 1 cent to $3.35 per pound in New York trade, while three-month contracts for the metal used in construction and manufacturing was up $8 to $7,390 per tonne on the London metal exchange as inventories continued to decline.

Copper inventories in LME-monitored warehouses were down another 1,725 tonnes Tuesday, but price gains were limited by concerns that demand in China will slow as the government there continues to try to limit lending by banks in order to slow growth in the Asian nation’s property market.

Meanwhile, aluminium stockpiles in warehouses monitored by the LME added 20,975 tonnes, reversing a recent trend of declines, sending contracts $34 lower to $2,017 per tonne, while lead fell $7.50 to $2,122.50 per tonne, nickel was down $50 to $21,900 per tonne and tin dropped $350 to $21,000 per tonne.

Zinc, on the other hand, was higher as it added $12 to $2,135 per tonne.

Among precious metals, December gold added $3.10 to $1,231.40 per troy ounce in New York after trading lower earlier in the day.

The gains for gold came on reports that Iran is stepping up its gold purchases, importing 23 tons between April and July, while China is reportedly ramping up gold production to meet domestic demand there.

Other precious metals saw prices decline in New York trade as September silver was down 20 cents to $18.39 per troy ounce, October platinum was $10 lower to $1,536 per troy ounce and September palladium dropped $6.90 to $490.40 per troy ounce.