Global Copper Output Exceeds Demand for 3rd Month, Report Shows
Lisbon, Oct. 16 (Bloomberg) -- Global copper production
exceeded demand for a third straight month in July as slowing
economies reduced use of wire and pipes, a report from a
government-sponsored research group showed.
The 105,000-metric-ton surplus in July reported by the Lisbon-
based International Copper Study Group raised the excess supply
for the first seven months of the year to 202,000 tons. During the
same period last year, there was a supply deficit of 481,000 tons.
``The copper market continues to be demand-challenged,'' said
William O'Neill, head of futures research at Merrill Lynch & Co.
in New York. The surplus for the full year may reach 400,000 tons,
he said.
Copper futures traded on the Comex division of the New York
Mercantile Exchange have fallen 25 percent this year. The most-
active December contract today fell as low as 63.5 cents a pound,
matching the two-year low reached on Oct. 9.
U.S. industrial production fell for a 12th straight month in
September, the Federal Reserve said today.
Demand for copper in July was 2.6 percent lower than a year
earlier and mine production was up 5 percent, according to the
copper study group, which is financed by countries that consume
and produce the metal.
``Production growth from primary sources is still strong
despite the subdued demand situation,'' the report said.
--Claudia Carpenter in the New York newsroom (212) 318-2346 or at
ccarpenter2@bloomberg.net/jb |
