Copper surges

Sydney/Melbourne

London copper struck its highest level since mid February on Tuesday after a unexpected strength in China´s economy and a weaker dollar fanned upside technical momentum.  Sentiment towards copper from the physical market has picked up as fabricators in China have replenished their inventories, Citi said in a report.

"Bonded warehouse premiums returned to $72/t, the highest in eight months, and SHFE inventories also saw healthy draws. That said, we believe there is more inventory clearing work to be completed before imports could pick up sustainably."

Lending support, the dollar is near 13-month lows, leaving dollar-denominated commodities such as copper cheaper for holders of other currencies.  Three-month copper on the London Metal Exchange jumped by 1.2 percent to $6,097 a tonne by 0249 GMT, after a 0.4 percent gain in the previous session, having forged a new top at $6,100.50 a tonne the highest since Feb. 20.