Copper prices sprung around 1.8% on Tuesday on notional fund buying as the market anxiously eyed another powerful storm threatening oil output in the US Gulf of Mexico. A source at Odey Asset Management said " Post Katrina, the market grabbed the story it most wanted to hear- that the rate - tightened cycle would slow -but there is an increasing realization that the storm is not likely to affect monetary policy". At Mondays London close the price of copper, used in construction and wiring, striked $3,690 a tonne at one point ,well up from $3, 623 on London Metal Exchange(LME). Last week, copper declined at $ 3,493, having slashed from early - September record highs of $3,725 as inventories rose to 11- month highs. By afternoon , it was traded at $3,668.
Many commodities have monitered energy gains on concerns Tropical Storm Rita could upset output in the Gulf less than a month after withering Hurricane Katrina hit the region. However, there was less contemplative appetite for other industrial metals, and nickel fell.
Zinc was at $1,406/1,406.50. up$4, while lead gained$5.50to$895.50. In other metals, nickel fell to $13,355 from $13,500 on Monday. Tin squeezed out a $5 gain at$6,500. Aluminium, the LMEs largest contract, was unaltered at $1,824.