Copper rises to near record high

Copper came within touching distance of record highs on Monday as expectations of healthy demand from top consumers China and the United States boosted sentiment. Tin hit a record high of $30,099 a tonne on worries about supplies from top exporter Indonesia.
Benchmark copper hit $9,750 a tonne, its highest since reaching a record at $9,781 on January 19. The metal used in power and construction ended at $9,745 from $9,635 on Friday. "The economic data has been favourable, (US) consumer confidence has risen," Credit Agricole analyst Robin Bhar said.
"If you're positive about the macro outlook, one way to play that view is through the copper market." A measure of factory activity in the US Midwest rose to a 22-1/2 year high in January on strong orders and employment prospects. Meanwhile, consumer spending ended 2010 on a firmer footing, a trend that economists expected to continue as the labour market recovery gains traction.
Investors had retreated from copper on expectations of a lull in activity with the start of a holiday week in China on Wednesday and worries about tighter monetary policy there. Markets expect another rise in Chinese interest rates in the first quarter. The country hiked rates twice and raised banks' reserve requirements six times last year.
China accounts for nearly 40 percent of global copper demand estimated this year at around 21 million tonnes. The United States is the second-largest consumer, accounting for about 15 percent of consumption. Aluminium rose to near three-week highs of $2,520 a tonne. The metal used in transport and packaging ended at $2,519 from $2,472 on Friday. Tin was at $30,100 a tonne from $29,600.
Prices are up more than 10 percent so far this year. Last year the gain was nearly 60 percent. Behind the rise has been constraints on output in Indonesia. Lead ended at $2,510 a tonne from $2,437 on Friday. The battery material has in recent weeks come under pressure from stocks in LME warehouses, which at 279,925 are at their highest since 1995.
Zinc ended at $2,427 a tonne from $2,354, after having earlier touched its highest in nearly two weeks at $2,435, and nickel ended at $27,350 from $26,620, having touched its highest since April at $27,350.