London Metal Exchange copper climbed today on expectations of tightness.
After opening the session at $7,438.5, the three-month official copper contract settled at $7,515/7515.5 per tonne, as speculation grew that policy makers around the globe would increase stimulus measures.
A statement by Xstrata’s head of copper forecasting the red metal to remain tight and demand from China to remain strong also served to support the market today, analyst Fairfax noted.
Copper reached a high of $7,522 after starting on a low of $7,438.5 per tonne during the official session.
At 245,075 tonnes, stocks in LME warehouses were up 4,375 tonnes, after deliveries into Europe and Asia.
But while copper trended up, other base metals lost ground, suggesting that markets were unshaken by news of developments in the race for the LME.
Participants were today absorbing news that the Hong Kong Exchanges & Clearing Ltd (HKEx) has trumped the InterContinental Exchange (ICE) after the London Metal Exchange’s board approved its £1.38 billion ($2.14 billion) bid
for the exchange.
Three-month aluminium settled the official session at $1,951/1951.5 per tonne, down slightly from an open price of $1,957 per tonne.
The light metal reached a high of $1,965 per tonne and fell to a low of $1,944 during the session.
Stocks in LME-listed warehouses stood at 4,860,925 tonnes, down 13,375 tonnes following deliveries out of the US and small amounts from the UK.
Three-month nickel, meanwhile, settled the official session at its lowest level of the session, $16,650/16,655 per tonne, down from $16,750 per tonne on opening, after reaching a high of $16,850.
LME warehouse stocks fell by 372 tonnes to 103,932 tonnes, after deliveries out of Singapore and Europe.
Market players now keenly await news of this week's Greek elections, and clarity over the country’s future involvement in the single currency.
“You can talk about Spanish bond auctions and the US data and all the rest, but relative to the bigger picture – which is Greece – they’re meaningless,” a category I trader said.