Copper Prices Rise on Expectations for a Rebound in U.S. Demand
New York, Jan. 24 (Bloomberg) -- Copper futures rose to a two-
week high on expectations for an economic recovery in the U.S.
that would boost demand from the largest user of the metal.
Federal Reserve Chairman Alan Greenspan said the U.S. economy
is beginning to show signs of recovery from a recession that's
curbed demand for wire and pipes. Economic declines in the U.S.,
Japan and Germany contributed to a 22 percent plunge in copper
prices last year.
``The comments from Mr. Greenspan are positive for copper,
because if the economy grows, then demand for copper will rise,''
said Frederick Demler, an analyst at Man Financial Inc. in New
York.
Copper for March delivery rose 0.7 cent, or 1 percent, to
71.55 cents a pound on the Comex division of the New York
Mercantile Exchange, the highest closing price since Jan. 9.
Prices have risen 19 percent from a 14-year low of 60.35 cents on
Nov. 8.
In London, copper for delivery in three months rose $10, or
0.6 percent, to $1,560 a metric ton (70.76 cents a pound) on the
London Metal Exchange.
``There have been signs recently that some of the forces that
have been restraining the economy over the past year are starting
to diminish,'' Greenspan told the Senate Budget Committee.
The Fed's policy-setting Open Market Committee reduced the
overnight lending rate 11 times last year in an attempt to revive
the economy.
Pickup Underway?
U.S. copper demand may rise 2 percent this year after
plunging 10 percent in 2001, according to Dan Roling, an analyst
at Merrill Lynch & Co. in New York.
Some copper users are already seeing a pickup in business.
At Rome, New York-based Revere Copper Products Inc., which
makes parts for use in electronics and construction, shipments so
far this month are running at twice the pace in December,
according to President Brian O'Shaughnessy.
``December was our worst month in 20 or 30 years,''
O'Shaughnessy said. Shipments still are down by one-fourth from a
year ago, he said.
--Claudia Carpenter in the New York newsroom (212) 318-2346 or at
ccarpenter2@bloomberg.net with reporting by Michael McKee in
Washington. Editor: Bixby |
