Copper Rises as Report Signals Stronger U.S. Industrial Demand
2002-08-15 15:17 (New York)
Copper Rises as Report Signals Stronger U.S. Industrial Demand
New York, Aug. 15 (Bloomberg) -- Copper futures had their
biggest gain in seven weeks after a report from the Federal
Reserve signaled stronger demand from U.S. automakers and other
industrial users.
U.S. production of motor vehicles and auto parts jumped 4.2
percent in July, the Fed said. The report rekindled trader
interest in copper futures, which had sunk to a seven-month low
yesterday on concern the U.S. economy was growing too slowly to
stimulate industrial demand for metals.
``The copper market is looking at strength of companies that
are major users of base metals,'' said Jim Steel, director of
commodity research at Refco Inc. in New York. ``A lot of traders
were beginning to wonder how much lower prices could go.''
Copper for September delivery rose 1.25 cents, or 1.9
percent, to 68.25 cents a pound on the Comex division of the New
York Mercantile Exchange, the highest closing price since Aug. 1
and biggest one-day gain since June 28. Prices were 3.6 percent
higher than a year earlier.
In London, copper for delivery in three months rose $42, or
2.8 percent, to $1,521 a metric ton (68.99 cents a pound) on the
London Metal Exchange.
U.S. production of durable goods such as cars and appliances,
which use copper, rose 2.5 percent last month, even as
manufacturing overall showed a smaller 0.1 percent gain, the Fed
report showed. An average automobile contains about 50 pounds of
copper, according to the New York-based Copper Development
Association.
General Motors Corp., the world's largest automaker, raised
its North American production plan for the third quarter by 1.4
percent from its plan in July.
--Claudia Carpenter in the New York newsroom (212) 318-2346 or at
ccarpenter2@bloomberg.net with reporting by Monee Fields-White in
Washington. Editors: Bixby, *Banker. |
