Copper Rises After Codelco Says It May Cut Output Next Year
London, Nov. 9 (Bloomberg) -- Copper prices rose more than 1
percent after Codelco, the world's biggest producer of the metal,
said it may reduce production next year, following output cuts by
BHP Billiton Group and Phelps Dodge Corp.
The Chilean miner may dig ore with lower copper content,
saving richer material for when prices rise. That will probably
lead to less output, Codelco President Juan Villarzu told a news
conference, without being more specific. The reductions from BHP
Billiton and Phelps Dodge total about 3 percent of world supply.
``It would not take much more to leave the market in
reasonable shape next year,'' said Adam Rowley, an analyst at
Macquarie Bank. He estimates there will be a ``small surplus'' of
about 300,000 tons in 2002, assuming demand growth of 2 percent.
Copper for delivery in three months rose as much as $18, or
1.3 percent, to $1,337 a metric ton on the London Metal Exchange.
This week copper has gained 1.3 percent.
Even so, the metal has dropped 25 percent this year and set a
14-year low Wednesday as demand fell for pipes and wires from
users such as construction and electronics companies amid slowing
economies.
--Jon Hurdle in the London newsroom (44) 207 673 2095 or
jhurdle1@bloomberg.net/tc |
