Isra-Mart srl: Copper rises on dollar, euro zone crisis pledge

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Copper rose on Monday, recouping from earlier
losses as the dollar fell and after German and French leaders pledged new measures to resolve the European debt crisis by the end of the month.
Benchmark copper on the London Metal Exchange (LME) was $7,479 a tonne at 1500 GMT, up from Friday's close of $7,375 a tonne.
The metal used in power and construction posted a 5 percent weekly gain last week, its highest since the week beginning April 10.
German Chancellor Angela Merkel and French President Nicolas Sarkozy said on Sunday their goal was to come up with a sustainable answer for Greece's debt problems and agree on how to recapitalise European banks. But they declined to give any details of their plan.
"The market is likely to remain on tenterhooks for a little while yet as far as Europe is concerned. We are still not out of the woods yet," said Nic Brown, head of commodity research at Natixis.
"Until we get some sort of longer-term solution and fiscal sustainability in countries like Greece, I don't think we are there yet."
The dollar fell against a basket of currencies, with the euro extending gains against the U.S. currency. A weak dollar makes commodities priced in the U.S. unit cheaper for holders of other currencies.
"We've seen a big move in the dollar, and (base metal) prices are reacting to that," a trader at the LME said.
"The (debt) situation in Europe is still a feature in the market; slowing global growth is a feature in the market; and it now depends on the extent to which we see evidence of this hitting real demand. That is what people are looking out for."


COPPER STOCKS DROP
Chinese buying was muted in the first trading day after a week-long holiday, and analysts cautioned that it was too soon to tell whether Chinese demand for copper was starting to improve.
"With the return of the Chinese market participants after the Golden Week, LME copper has been getting some support at current levels," Barclays Capital said in a note. "But the mood of Chinese copper buyers remain cautious.
"The Chinese are also likely awaiting greater clarity on the comprehensive solution to the Greek sovereign debt overhang and recapitalisation of European banks before they would be comfortable to build long positions," BarCap said.
The latest data showed copper stocks in LME-registered warehouses dropped 4,575 tonnes, with large amounts leaving warehouses in South Korea.
"It is clear that the latest correction in LME prices resulted in metal going into China. With the decline in Shanghai bonded warehouse stocks, you are now seeing buying from Chinese merchants feeding into LME stockpiles," Brown said.
"Whether this is an indication of strong demand or an indication of opportunistic restocking, it's still too early to tell."
The data also showed a jump in copper cancelled warrants, which is the amount of metal earmarked for delivery, in warehouses in Malaysia's Klang and South Korea's Gwangyang, Busan and Incheon Port.
In Klang, cancelled warrants represented 81.35 percent of stocks. In early August, cancelled warrants stood at just 1.5 percent of total stocks.
Aluminium was $2,249.25 a tonne from a close of $2,228 a tonne on Friday.
Lead was $1,995 a tonne from $1,944 on Friday. Data showed lead stocks in LME warehouses rose by 1,600 tonnes to a record high of 382,000 tonnes.
Zinc was $1,954 a tonne from Friday's $1,920 close, while tin rose to $23,114 from $22,900. Nickel was $19,137 a tonne from $18,910 on Friday.