Copper Rises to 4-Month High, Leading Metals Rebound (Correct)
2001-11-27 06:40 (New York)
London, Nov. 27 (Bloomberg) -- Copper rose to a four-month
high, extending a rebound in aluminum, nickel and zinc from the
lowest levels in years, on signs the U.S. economy will recover in
2002, boosting consumption of metals.
Use of such materials may increase as consumer confidence
recovers in the world's top economy. The Conference Board's index
of consumer sentiment, to be reported later today, probably
increased in November for the first time in five months, analysts
said. The Standard & Poor's 500 index of U.S. stocks has risen 9.2
percent this month.
Investors ``are convinced we've seen the cyclical lows now,''
said Robin Bhar, an analyst at Standard Bank. ``If you're a
consumer (of metals) you might be panicking, thinking you've
missed the bottom.''
Copper for delivery in three months gained $30, or 1.9
percent, to $1,545 a metric ton in electronic trading on the
London Metal Exchange, its highest since July 18. That pared its
decline for the year to 17 percent, after having lost as much as a
quarter of its value.
Aluminum climbed to its highest in three months, rising $29,
or 2 percent, to $1,395 a ton. The metal, used in products from
beer cans to airplanes, is still down 11 percent on the year.
Nickel gained $100, or 1.8 percent, to $5,450 a ton, while
zinc rose $6, or 0.7 percent, to $810 a ton, bringing its decline
for the year to 23 percent.
Copper prices rose yesterday after production was interrupted
at the Ok Tedi mine in Papua New Guinea because of a blockade by
landowners. Staff returned to work later in the day after the
dispute was resolved.
BHP Billiton, part owner of Ok Tedi, said Nov. 8 it will cut
overall copper production by at least 20 percent until next June
because of low prices. Chile's Codelco, the biggest copper
producer, is considering its own reductions next year, the company
said earlier this month. |
