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Slump of Copper & Zinc Inventories Propels Prices Up

June 20, 2014 at 10:52 by Vladimir Vyun

Copper and zinc rallied today as inventories were shrinking. Other industrial metals joined the rally. Copper stockpiles in exchanges around the world sank 47 percent since March, reaching the lowest level since 2008. Reserves of zinc monitored by the London Metal Exchange declined 28 percent this year.

Yesterday’s positive economic data from the United States also contributed to the rally of industrial metals. The manufacturing index of the Federal Reserve Bank of Philadelphia rose from 15.4 in May to 17.8 in June, while analysts thought it would fall. Unemployment claims declined from 316,000 to 312,000 last week. Signs of economic growth promise steady demand for industrial metals.

Contract for delivery of copper in September rose $0.0165 (0.54 percent) to $3.0920 per pound as of 10:40 GMT today on COMEX. Zinc jumped as much as 1 percent to $2,175 per metric ton, touching the highest price since February 2013.

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