Copper moves higher

Copper rose on Thursday as dollar weakness attracted non-US buyers after earlier hitting a two-week low on worries about soft Chinese demand. Copper for three-months delivery on the London Metal Exchange (LME) closed in the rings at $9,430 a tonne versus Wednesday's close of $9,381.
Earlier on Thursday, it touched $9,332 a tonne, its lowest since March 17. The metal used in power and construction is heading for its first quarterly loss since the second quarter of last year. Helping to support base metals, the dollar fell versus a basket of major currencies. Metals are typically priced in dollars, and so a dollar decline makes them less expensive in other currencies.
Base metals have been knocked this year by turmoil in the Middle East and North Africa, which has boosted oil prices and stoked inflation concerns, and by the earthquake, tsunami and nuclear disaster in Japan. Copper was down 8 percent from a record high of $10,190 in mid-February as high prices have cooled China's buying interest for the metal used in power.
Compounding concerns about weak physical demand, stocks of copper in LME warehouses rose again on Wednesday, up 125 tonnes to total 439,850 tonnes after steadily climbing since December. Since Japan's earthquake and tsunami, copper has gained some support from investors shifting their focus to the country's need to rebuild infrastructure.
Aluminium ended at $2,645 a tonne in the rings from $2,629. "In terms of supply and demand dynamics, Chinese output picked up earlier this year, as the government-imposed power restrictions were eased once again," Credit Suisse said of the metal in a note. The metal used in transport, packaging and construction has been underpinned by higher energy costs which lifted prices to a 2-1/2-year high of $2,656 earlier this week.
Zinc ended at $2,362 a tonne from $2,338. Dowa Mining Holdings Co said it plans to resume operations of its 200,000 tonnes-a-year Akita zinc smelter in north-eastern Japan in early April.
The Akita plant is Japan's biggest zinc smelter, accounting for nearly 30 percent of Japan's total production. Nearly 65 percent of Japan's production capacity of zinc has been suspended since the March 11 earthquake. Battery material lead closed at $2,695 a tonne in the rings from a last bid of $2,655 a tonne, tin at $31,800 a tonne from a close of $31,250, and nickel at $26,095 a tonne from $26,030 on Wednesday.