6 April 2006

Copper, Zinc Rise to Records

Bloomberg.com: Top Worldwide: "April 5 (Bloomberg) -- Copper rose to a record, leading a rally in aluminum, nickel and tin, as declining supplies led investment funds to increase purchases of the metal. Zinc also climbed to an all-time high.
Strikers at Grupo Mexico SA have shut the Latin American country's second-biggest copper mine at a time when inventories have plunged to their lowest in more than a month. The amount of money in index-linked commodity funds will rise 38 percent this year to $140 billion, according to Barclays Capital.
``Most funds are long in base metals,'' Stephan Wrobel, chief executive officer of Diapason Commodities, who oversees about $3 billion in assets, said in an interview in London. ``The supply and demand dynamics of copper still have a long way to go.''
Copper for delivery in three months on the LME rose as much as $137.30, or 2.5 percent, to $5,686.30 a metric ton, beating the previous record set April 3 by $69.30. It was at $5,670 at 4:56 p.m. in London. Copper has risen in five of the past six weeks, taking its gain this year to 29 percent. "

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