Copper rises for fourth day in a row to new high for the year

The red metal closed with a surge of 1.44% to US$ 1.67.

06 de Marzo de 2009 | 12:45 | ValorFuturo / REUTERS

LONDON.- Copper closed with its fourth straight gain today at the London Metal Exchange (LME) after trading for US$ 1.67512 per pound, compared to US$ 1.65 on Thursday and US$ 1.60 on Wednesday.

The value is the highest for the metal since November 26th of 2008, when it traded for US$ 1.69734.

As a result, the monthly average climbed to US$ 1.60467, while the yearly average rose to US$ 1.49506.

Copper surged after a decrease in inventory and a weaker dollar slowed down metal markets, as investors searched for more clarity with regards to Chinese demand.

The question now among investors is whether the increases observed this week represent the beginning of increased demand from China or the accumulation of inventory.

"The million-dollar question is whether it is going to China due to an increase in demand, which is likely, or because inventory has been accumulated by the government and trade", stated Robin Bhar, who is a metal analyst for Calyon.

While offering further clues, the president of the state-owned firm Minmetals told reporters in China that they plan to buy copper, aluminum and other metals for their reserve.

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