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Monthly Archives: June 2011

Scotiabank's Mohr forecasts copper demand rebound in second half of 2011

Scotiabank's Mohr forecasts copper demand rebound in second half of 2011

Moderately lower base metals, molybdenum, uranium and silver prices more than offset stronger gold, potash and cobalt prices in May, lowering the Scotiabank Commodity Price Index by 2.3% last month.

LME copper prices eased from US$4.30 per pound in April to $4.05 per pound in May "and are still exceptionally lucrative at US$4.08 in late June," noted Scotiabank economist Patricia Mohr.

"Traders have been reluctant to bid prices below US$4, with Chinese buying expected to rebound in the second half of 2011 and world supply/demand conditions returning to ‘deficit;," she said.

Nevertheless, Mohr anticipates U.S. copper demand will be boosted in the third quarter by "resumed Japanese auto assemblies in the United States, as the parts shortage subsides-also lifting U.S industrial activity."

In her analysis, Mohr noted spot potash prices (FOB Vancouver) are up US$102 per tonne since December 2010, averaging $445 tonne in May to $481 per tonne in June.

"Canpotex has sold considerable volumes to Brazil and Southeast Asia recently at higher prices; another increase is being considered for late summer," she said. "As yet, there is no news on second-half potash contracts with India, which objects to rising prices from Canpotex and BPC [Belarusian Potash Company]."

"World potash deliveries should total around 58-59 mt in 2011, on a par with the previous peak in 2007," Mohr predicted.

Meanwhile, spot uranium prices edged down from an average of US$57.56 per pound in April to $56.90 in May and are now $54.25, said Mohr. Long term base contract prices fell $2 to $68 per pound in late May.

Mohr forecast that contract pricing for premium-graded coking coal from Western Canada to Asian markets "should hold up near the current record high of US$330 per tonne in 2011:Q3 (July to September)." She observed that Queensland mines have not yet fully recovered from flooding earlier this year and "supplies of higher-quality coal remain tight."

 

By: Dorothy Kosich
Wednesday , 29 Jun 2011

Aluminum Stockpiles Fall for 23rd Session on Worldwide Decline

Aluminum Stockpiles Fall for 23rd Session on Worldwide Decline

Aluminum inventories tracked by the London Metal Exchange dropped for a 23rd session, declining in warehouses around the world.

Stockpiles of the lightweight metal fell 11,475 metric tons to 4.53 million tons, daily exchange figures showed. That was the lowest level since Feb. 4. Declines were registered in warehouses from Detroit to Singapore. Inventories are down 3.8 percent since rising to a record 4.71 million tons on May 18.

Canceled warrants, or orders to draw aluminum from LME stocks, fell 11,475 tons to 461,725 tons. They jumped 71 percent in the four weeks through June 10 and reached the highest level since at least October 1997 on June 6.

The increase was “the result of the breakdown in the profitability of the carry trade throughout May,” said Angus Staines, an analyst at UBS AG in London. “My calculations suggest that it was not profitable to roll the carry trade during most of May,” he said June 24.

Lead inventories rose 750 tons to 322,500 tons, while canceled warrants increased 2,875 tons, or 7.9 percent, to 39,250 tons on a gain in Port Klang, Malaysia. Zinc stockpiles fell 475 tons to 866,750 tons and canceled warrants declined 375 tons to 48,850 tons.

Copper inventories dropped for a third day, falling 3,175 tons to 470,525 tons. Canceled warrants declined 4,750 tons to 29,350 tons.

To contact the reporter on this story: Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

 – Jun 27, 2011

Copper gains on hints of Chinese demand

Copper gains on hints of Chinese demand

Copper rose in New York, reducing this week’s drop, as shrinking inventories fueled speculation demand is improving in China, the world’s biggest user of the metal.

Copper stockpiles tracked by the Shanghai Futures Exchange fell to a 22-month low this week, on course for a third straight monthly decline. Aluminum inventories tumbled to an 18-month low. Still, copper is heading for a fourth monthly retreat in a row, partly because of concern Chinese demand might wane after local interest rates increased.

“We’ve been getting increasingly optimistic about Chinese demand for base metals in recent weeks, and this week’s falls in Shanghai stockpiles very much reinforce these views,” said Nic Brown, an analyst at Natixis Commodity Markets Ltd. in London. “After a period of destocking earlier this year, we do seem to be heading into a restocking phase.”

 

Copper for September delivery gained 4.65¢, or 1.2%, to US$4.1030 a pound by 7:17 a.m. on the Comex in New York. Prices are down 0.4% this week. Copper for three- month delivery climbed 1.2% to US$9,065 a metric ton on the London Metal Exchange.

Prices also advanced as commodities rebounded from the lowest level in more than four months, lifting the Standard & Poor’s GSCI index of raw materials as much as 1.1 percent. Robusta coffee and corn paced gains.

Inflation in China

Chinese Premier Wen Jiabao said the country’s efforts to stem inflation have worked and the pace of consumer-price increases will slow, even as the nation’s top economic planner said inflation may “remain elevated for some months.” China has paused for 11 weeks in raising interest rates, the longest gap since increases began in October.

“Given the way that year-on-year base effects will reduce headline inflation over coming months, this sounds to me as though China will be able to allow growth to reaccelerate,” Brown said.

Copper stocks slid to 80,792 tons according to a survey of 10 warehouses in Shanghai, the exchange said. Inventories in two bonded warehouses dropped 3,142 tons to 23,010 tons. Aluminum inventories dropped for a 15th week to 270,495 tons, according to a survey of 20 warehouses in Shanghai, Guangdong, Jiangsu and Zhejiang provinces.

LME copper stocks slipped to 473,700 tons, paring a weekly gain, daily figures showed. Aluminum inventories fell to 4.54 million tons, rounding out a fifth weekly decline.

Aluminum for three-month delivery on the LME rose 0.2% to US$2,514 a ton and zinc was unchanged at US$2,260 a ton. Nickel advanced 0.3% to US$22,200 a ton, tin rose 0.2% to US$25,250 a ton and lead gained 0.9% to US$2,572 a ton.

 

  Jun 24, 2011 – 8:04 AM ET

Aluminum’s Premium Gains Being Fueled by LME Warehouse Rules, Harbor Says

Aluminum’s Premium Gains Being Fueled by LME Warehouse Rules, Harbor Says

London Metal Exchange rules are creating delivery bottlenecks for aluminum that are boosting prices and causing seven-month delays at Detroit warehouses, commodity researcher Harbor Intelligence said.

Warehouses monitored by the LME, the world’s largest metals exchange, are obliged to deliver a minimum of 800 metric tons to 1,500 tons daily, even as global stockpiles of aluminum rose almost fivefold to 4.58 million tons since the end of 2007. Detroit’s warehouses hold 25 percent of LME-monitored inventory. The premium paid in the Midwest to get the metal on top of its cash price surged to a 16-year high last month.

The LME’s minimum-delivery rule “is one of the factors that, without a doubt, is behind record high Midwest premiums,” Jorge Vazquez, a senior vice president at Harbor Intelligence, said yesterday in an interview in Chicago. The higher premium “implies consumers paying a higher price for aluminum.”

Aluminum for delivery in three months has climbed 30 percent in the past year, and in May rose to the highest level since August 2008. The metal rose $1.50 to $2,542.50 a ton by 8:11 a.m. on the London Metal Exchange.

Bottlenecks in the U.S. warehousing system combined with the use of aluminum for financing deals may have cut the amount that’s available even as total LME stockpiles remain near a record. Detroit, a city associated with the auto industry, is the only site holding more than 900,000 tons of the metal, according to exchange figures.

Cash Rates

The premium that buyers pay over cash rates to get supplies surged 37 percent this year and touched 9.5 cents a pound on May 6, the highest since February 1995. The premium averaged 5.7 cents in the past three years.

Global aluminum stockpiles monitored by the LME surged to a record 4.71 million tons on May 18.

Starting April 1, minimum daily delivery sizes will increase to 2,000 tons for sites holding between 300,000 tons and 600,000 tons, and 2,500 tons for sites with 600,000 tons to 900,000 tons, the LME said last week in a notice to members. The board “will give further consideration” to the proposal to raise minimum delivery rates for stockpiles above 900,000 tons.

“There’s a lot of pressure on the LME to change the rules in a way that at the end of the day more metal is available and faster,” Vazquez said. “The bulk of the problem is Detroit, and right now, the LME is debating how much they should increase the outload rate specifically for Detroit.”

Deliveries Study

The LME, which handled $11.6 trillion worth of contracts last year, hired Europe Economics to study deliveries and announced the report results in May. According to the proposal, warehouses storing at least 900,000 tons of metal would be required to release at least 3,000 tons a day.

An increase in metal deliveries required of warehouses with very large stocks should produce a more balanced distribution of inventories, reduced premiums, shorter lines and a “more rational” set of prices, Europe Economics said. Its study included 46 interviews and visits to 12 warehouses in Europe, Asia and North America.

LME is going to change the rule and will probably revise the requirement to 3,000 tons, and it likely won’t go into effect until April, Vazquez said. Once that is approved, that will only help the premium “a little bit,” he said.

“Premiums in 2012 could still reach a new high given the tightness in the Americas that comes from growing demand in the entire continent, while Brazil and Venezuela are producing at lower run rates than last year and as no new capacity will hit the market soon,” Vazquez said. He also cited “booming demand” in the Americas.

High diesel prices, a shortage of trucks and the tightness in the aluminum market also are contributing to the premium gains, Vazquez said.

“People are mostly buying hand-to-mouth,” he said. “That implies when they want metal immediately, they’re really struggling to get it.”

To contact the reporters on this story: Elizabeth Campbell in Chicago at ecampbell14@bloomberg.net; Yi Tian in New York at ytian8@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Copper falls on worries about Greek bailout

By Sue Thomas

LONDON, June 20 (Reuters) – Copper fell on Monday as investors lost their appetite for risk after European finance ministers postponed an emergency loan to help Greece avoid defaulting on its debt and China demand worries weighed.

Three-month copper on the London Metal Exchange fell 1.1 percent to $8,987.75 a tonne at 0950 GMT, after closing up 0.3 percent in the last session.

"The Greece situation has been weighing on sentiment and I think there are still concerns about Chinese monetary policy and the direction that's going to take," Barclays Capital analyst Gayle Berry said.

"Those are the two largest underlying concerns in the market at the moment. Until we get some kind of resolution on the macro front we'll continue to see this volatile price action."

China last week raised it bank reserve ratios to try and douse inflation, which is running at its fastest pace in almost three years.

Euro zone finance ministers postponed a final decision on extending 12 billion euros ($17 billion) in emergency loans to Greece, saying Athens would first have to introduce harsh austerity measures.

The move sent world stocks, commodities prices, and the euro lower. The euros fell against the dollar, making commodities, including base metals, more expensive for holders of other currencies.

 

NICKEL LOW

Nickel prices hit their lowest since November at $21,350 a tonne. The price of the metal, used to make steel, is down by 27 percent from the year's highs reached in February.

"At these levels nickel is looking oversold," Berry said. "From a fundamental perspective we don't see any reason why nickel has underperformed to this extent."

"LME inventories are falling yet prices have been very weak. I think the market is pricing in expectations of a better outlook for supply in the second half of the year."

The International Nickel Study Group said in April it expected the nickel market to record a 60,000-tonne surplus this year, compared with a deficit of 30,000 tonnes in 2010.

Nickel inventories in LME-monitored warehouses fell by 516 tonnes to 110,880 tonnes and are down nearly 20 percent since the start of the year to a near a two-year trough, data on Monday showed.

"We believe that demand growth should at least partially absorb additional supplies, particularly once the Japanese steel industry recovers again," Credit Suisse said in a research note.

Lead inventories in LME-monitored warehouses fell by 125 tonnes to 322,575 tonnes, data showed on Monday, but are still within spitting distance of 16-year highs.

Lead was down 1.8 percent at $2,406, from $2,450 at the close on Friday.

Aluminium was down 0.6 percent at $2,529 per tonne from $2,545, zinc was $2,168 from $2,187 and tin off 1.6 percent at $24,600 from $25,005.

(Editing by Alison Birrane)


Copper in London Set for Best Week in a Month on Outlook for China Demand

Copper in London Set for Best Week in a Month on Outlook for China Demand

Copper climbed, set for its first weekly advance in three, on optimism that China’s demand is improving, tempering concern about Europe’s debt crisis. Zinc and nickel also gained.

Three-month copper on the London Metal Exchange gained for the first day in three, rising as much as 0.7 percent to $9,125 a metric ton. The metal last traded at $9,077.50 by 3:27 p.m. Singapore time. It has risen 1.5 percent this week. Zinc, nickel and tin also rose on better-than-estimated U.S. jobless claims and housing starts.

“The market is pricing the expectation for a pickup in demand in the months ahead,” Yu Haijian, an analyst at Bohai Futures Co., said from Changchun in Jilin.

September-delivery copper in New York declined 0.4 percent to $4.1205 a pound, while August-delivery metal on the Shanghai Futures Exchange added as much as 0.6 percent to 68,540 yuan ($10,591) a ton.

Copper stockpiles in China, the biggest consumer, dropped by 36 percent last month and 21 percent in April. Inventories in bonded warehouses, used to store shipments before duties are paid, may have fallen 50 percent over the past two months, Chinese traders and analysts estimated this week, prompting speculation of a pickup in imports after two months of decline.

In the U.S., first-time filings for unemployment benefits declined last week to 414,000, compared with 420,000 claims estimated by economists surveyed by Bloomberg News. Construction began on 560,000 houses at an annual pace, exceeding the 545,000 median forecast of economists.

Europe, China

“The global economic environment remains fraught with uncertainty, which will keep a lid on prices,” said Yu.

European leaders meet to discuss the Greek debt crisis today amid concern a default would risk spreading contagion to other countries in the region, sending the euro lower against the yen and dollar. Alan Greenspan, former Federal Reserve chairman, said a default by Greece is “almost certain” and could help drive the U.S. economy into recession.

In China, the central bank announced a half percentage point boost in the reserve requirement ratio for banks on June 14, adding to its 11 reserve-requirement and four interest-rate increases since early 2010 to cool inflation, which climbed to 5.5 percent in May, the fastest pace in almost three years.

Zinc advanced 0.4 percent to $2,214 a ton, nickel climbed 0.3 percent to $21,670 a ton and tin gained 1.2 percent to $25,200 a ton. Aluminum fell 0.4 percent to $2,545.75 a ton while lead fell 0.2 percent to $2,476 a ton.

To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@Bloomberg.net

Copper Stockpiles Dropping 50% in China May Spur Imports

Copper Stockpiles Dropping 50% in China May Spur Imports

By Glenys Sim

Copper stockpiles in China, the world’s biggest consumer of the metal, may have dropped 50 percent in the past two months, potentially spurring more imports and higher prices.

Inventories in bonded warehouses, used to store shipments before duties are paid, may have declined to about 300,000 metric tons, according to estimates from traders and analysts in China including Shanghai East Asia Futures Co. The warehouses, whose holdings aren’t disclosed, contained about 600,000 tons at the end of March, according to Standard Bank Plc.

Increased shipments into China, which represents about 40 percent of global demand, may mean a rebound in prices that fell 9.8 percent from a record in February. Goldman Sachs Group Inc. anticipates copper trading at an all-time high of $11,000 a ton in 12 months as mining companies fail to keep pace with demand.

“Metal has been leaving the bonded warehouses at quite a steady pace because it is the peak-demand season,” said Jia Zheng, a trader at Shanghai East Asia. “China is still growing, which is keeping demand robust.”

Three-month futures on the London Metal Exchange peaked at $10,190 per ton on Feb. 15, before tumbling on concern that global economic growth may be slowing. The metal, used in pipes and wires, traded at $9,184 a ton at 11:31 a.m. in London.

Higher prices would benefit Phoenix, Arizona-based Freeport-McMoRan Copper & Gold Inc., Chile’s state-owned Codelco, and Australia’s BHP Billiton Ltd., the top three producers last year, according to London-based researcher CRU.

Industrial Production

China’s policy makers have been raising interest rates and ordering banks to set aside more cash to curb inflation that rose 5.5 percent in May, the fastest pace since 2008. Data this week also showed industrial production gained 13.3 percent in May, faster than forecast. The World Bank predicts China’s economy to expand 9.3 percent in 2011.

“Demand has definitely picked up,” said Che Hongyun, deputy director of research at Galaxy Futures Co., who also estimated that holdings in bonded warehouses have dropped to about 300,000 tons over the past two months.

The amount of copper held in warehouses monitored by the Shanghai Futures Exchange, fell 53 percent from this year’s high on March 17 to 83,275 tons last week.

‘Drew Massively’

Demand in China last month “was likely being met largely out of inventory, which drew massively,” Goldman analysts Allison Nathan and Jeffrey Currie wrote in a June 10 report. The report stuck with a 12-month price forecast of $11,000.

Copper stored in bonded warehouses has fallen about 150,000 tons in the past two months, Macquarie Group Ltd. said in a June 6 report. The bank had estimated the stockpiles were 550,000 tons on April 18.

Barclays Capital analyst Gayle Berry also said bonded holdings have dropped and forecast an increase in imports, according to a June 3 report. The Chinese market “is awakening from the destocking cycle that lasted nine months,” Nicholas Snowdon, an analyst at Barclays Capital, said June 9.

China’s copper-products output was 979,000 tons last month, 20 percent more than a year earlier, according to data from the country’s statistics bureau. Imports of copper and copper products were 254,738 tons last month, 36 percent lower than a year earlier, according to data June 13.

Higher Imports

The “latest numbers from China show that the country is drawing down its domestic inventories rapidly,” Tobias Merath, the Zurich-based head of global commodity research at Credit Suisse AG, wrote in a note yesterday. “China will have to step up its imports in the coming months.”

Near-term copper supplies in China have been more expensive than longer-dated contracts since April, suggesting increasing demand or tighter short-term availability. Spot copper in Shanghai’s Changjiang, the biggest cash market, was 740 yuan a ton more than futures today.

“Downstream demand is steady,” said Li Ye, an analyst at Minmetals Starfutures Co., referring to manufacturers that use copper to make products. “Traders have little problem finding buyers for metal once it leaves the warehouse.”

China’s copper imports have fallen as local output has risen and prices overseas have been more expensive, making imports unprofitable for traders who seek to exploit price gaps between markets. Refined-copper output in China hit a record 470,000 tons in March and was 439,000 tons in May.

Copper in London has traded at a premium to futures in China, falling 2.3 percent between April 1 and May 31 compared with the 3 percent drop in Shanghai, where prices include a 17 percent value-added tax. Copper for August delivery on the Shanghai Futures Exchange gained 1.3 percent to 68,610 yuan ($10,584) a ton today.

The International Copper Study Group has forecast a 377,000-ton global shortage this year. High prices will last “a substantial amount of years” on demand from China, Diego Hernandez, Codelco’s chief executive officer, said June 8.

–Editors: Jake Lloyd-Smith, Richard Dobson

To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

 

June 15, 2011, 7:20 AM EDT

BloomBerg

METALS-Copper eases after China loans data; inflation eyed

METALS-Copper eases after China loans data; inflation eyed

 By Carrie Ho
London copper fell on Monday,after a slowdown in Chinese lending in May, illustrating the
efficacy of Beijing's monetary tightening and accompanying risks
to demand.	
 Three-month copper on the London Metal Exchange fell
0.2 percent to $8,920.25 at a tonne by 0727 GMT. Earlier, copper
dipped as low as $8,889.25, its weakest since May 25.	
 Chinese banks made loans of 551.6 billion yuan in local
currency in May, missing market forecasts for 610 billion yuan,
the People's Bank of China said. 	
 Annual growth in China's broad M2 measure of money supply
edged down to 15.1 percent in the month from April's 15.3
percent. The median forecast of economists was for a 17.1
percent rise in outstanding loans and a 15.4 percent increase in
M2.	
 "The tighter credit affects manufacturing industries and
therefore their demand for base metals... This is bad news for
base metal prices in the short term," Jinrui Futures analyst Guo
Yong said.	
 Despite this, some analysts feel the slowdown in lending
also indicated a reduced risk of additional Chinese tightening. 	
 "The lower-than-expected loan data last month indicates that
the central bank is maintaining its monetary stance and
tightening steps are working well," said Qiu Jihua, an analyst
at Sealand Securities.	
 "M2 also dipped, which means the room for further rises in
interest rates or reserve requirements is smaller. Inflation is
not the only factor the central bank takes into account when
considering whether to raise interest rates or not.	
 "Although inflation is still quickening, the government must
also stay vigilant on downside risks to the economy, including
the risk of a hard landing."	
 But investors were cautiously pessimistic ahead of Tuesday's
release of Chinese industrial output and consumer price index
data and U.S. inflation numbers. 	
 The most-active August copper contract on the Shanghai
Futures Exchange SCFcv1 fell 0.6 percent to 67,190 yuan per
tonne, chasing the previous session's losses on the LME of more
than 1 percent, but maintaining the premium for benchmark London
copper versus Shanghai around 600 yuan.	
 Prompt prices in Shanghai held their premium to the third
month -- currently around 1,100 yuan, potentially encouraging
some metal to enter China from the international market after
disappointing imports in May.	
 "The continued backwardation in SHFE copper shows that
investors are buying copper for prompt delivery but are wary
about taking long positions," said Shanghai CIFCO Futures
analyst Zhou Jie. 	
 "The August contract price is falling as people are still
anticipating an interest rate hike in China in the near term,"
he added.	
 Lending some support to copper prices was the continued
supply disruption at Chile's El Teniente mine.	
 Output at the world's No. 5 copper deposit remained well
below capacity on Sunday, as staffing was limited by renewed
violence from striking contractors, mine owner Codelco said.
 	
 London lead prices fell 1 percent and the Shanghai
equivalent SPBc3 also lost ground after news that lead
pollution in eastern China seriously poisoned 103 children and
affected hundreds of other residents. 	
 This may prompt more efforts by the Chinese government to
crack down on heavy metal polluters among industry, such as lead
consumers.	
 "The past few poisoning incidents involved battery factories
and other lead-consuming industries. So the government may focus
on pollution by these industries in the short term. This may
push prices down," Jinrui Futures analyst Guo Yong said.	
 In industry news, commodities trader Glencore
 is considering making a 12 billion pound ($19.5
billion) takeover bid for ENRC , the Kazakh miner hit by
a bitter boardroom battle, the Sunday Times reported.
 	
 ENRC produces copper, alumina, aluminium and ferroalloys,
among other commodities.


 SHANGHAI, June 13 (Reuters)

Copper Stockpiles in Shanghai Drop, Zinc Falls From Record

Copper Stockpiles in Shanghai Drop, Zinc Falls From Record

 
Copper stockpiles monitored by the Shanghai Futures Exchange declined to near a 21-month low, while zinc inventories dropped from a record, according to data from the bourse.

Copper inventories fell 2,888 metric tons to 83,275 tons, according to a survey of 10 warehouses in Shanghai, the bourse said on its website. That’s near the 82,309 tons tallied two weeks ago, which was lowest level since August 2009.

Zinc inventories declined for the first time in more than six months, losing 125 tons to 401,875 tons, based on a survey of 15 warehouses in Shanghai, Guangdong and Zhejiang, the exchange said.

Aluminum stockpiles dropped for a thirteenth week, shrinking 10,541 tons to 308,635 tons, the lowest since January 2010, according to a survey of 20 warehouses in Shanghai, Guangdong, Jiangsu and Zhejiang provinces. Lead stockpiles gained 3,527 tons to 42,032 tons, data showed.

Natural-rubber inventories rose for a second week, adding 645 tons to 11,211 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the bourse said in the weekly report.

Helen Sun. Editors: Jake Lloyd-Smith, Richard Dobson

To contact the reporter on this story: Helen Sun in Shanghai at hsun30@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Aluminum Stockpile Orders Advance on Increase in California

Aluminum Stockpile Orders Advance on Increase in California

 
Orders to draw aluminum from London Metal Exchange inventories climbed, nearing the highest level in more than 13 years, on an increase in California.

Total canceled warrants, as the orders are known, rose 6,775 metric tons to 529,725 tons, daily exchange figures showed. A further increase of 50 tons would return warrants to the highest level since at least October 1997, reached June 6.

Canceled warrants surged to 12,300 tons in Long Beach, which stores 24,150 tons of the lightweight metal. That was the first change for the location since March 11, 2010, data compiled by Bloomberg shows. Total aluminum stockpiles fell for a 10th day, declining 7,800 tons to 4.66 million tons.

Copper inventories rose 400 tons to 477,150 tons, remaining at the highest level since May 27, 2010. They’re up 37 percent from last year’s low on Dec. 10. Canceled warrants advanced 275 tons to 18,825 tons.

Lead and zinc inventories, near the highest levels since 1995, dropped. Stockpiles fell 150 tons to 323,250 tons for lead and declined 225 tons to 866,625 tons for zinc.

To contact the reporter on this story: Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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