Copper Rises to 2-Month High as Demand Seen Exceeding Supply
New York, Dec. 11 (Bloomberg) -- Copper rose for a seventh
straight session, reaching a two-month high, on expectations for a
shortfall in global production, even with slowing demand in the
U.S., the world's largest user of the metal.
Copper consumption in the U.S. probably will grow only 0.7
percent in 2001, compared with 1.5 percent this year, according to
London-based CRU International. Global demand still will exceed
supply next year because of strength in other countries, the
London-based research firm said.
``Unless the U.S. economy goes completely on the skids, the
price of copper is going to remain constant or increase,'' said
Ronald Seiser, director of purchasing at Ampco Metal Inc. in
Milwaukee, Wisconsin. ``You've still got a lot of demand out there
and not enough supply.''
Copper for March delivery rose 0.05 cent to 89.15 cents a
pound on the Comex division of the New York Mercantile Exchange,
the contract's highest closing price since Oct. 16. Prices have
risen 5.4 percent this month and are up 3.9 percent for the year.
In London, copper for delivery in three months rose $11.50,
or 0.6 percent, to $1,927.50 a metric ton (87.43 cents a pound) on
the London Metal Exchange.
The U.S. probably will use 2.94 million metric tons of copper
next year, up from 2.92 million this year, said CRU analyst George
Cheveley. The rate of growth is expected to decline as the economy
slows, he said.
World copper demand is expected to rise 3.4 percent to 15.4
million tons in 2001 from 14.9 million tons this year on gains in
Europe, Asia, Mexico and Canada, Cheveley said. Global demand will
exceed supply by 250,000 tons this year, 200,000 tons next year
and 150,000 tons in 2002, he predicted.
The supply shortfall is reflected in the 60 percent decline
in LME-monitored copper inventories from a record high in March to
339,325 tons, the lowest level since September 1998. |
