Copper Prices Rise on Signs Demand Outpaces Growth in Supply
By Claudia Carpenter
Dec. 23 (Bloomberg) -- Copper prices in New York rose,
resuming a rally that has sent prices up 35 percent this year, as
declines in global inventory signal higher demand from
manufacturers of wire and pipe.
Stockpiles of metal in warehouses approved by the London Metal
Exchange have plunged 88 percent this year as global supply from
mines and scrap yards fell short of growing consumption, especially
in China and the U.S. Prices fell 2.3 percent yesterday on
speculation that hedge funds would trim their holdings after prices
reached a two-month high.
``The fundamentals of copper are very, very strong,'' said
James Koppel, a managing director at SG Commodities Group, a New
York-based trading unit of France's Societe Generale SA. ``I'm
overall bullish.''
Copper futures for March delivery rose 0.85 cent, or 0.6
percent, to $1.418 a pound at 11:13 a.m. on the Comex division of
the New York Mercantile Exchange. Prices have climbed 1.3 percent
this week, heading for the second straight weekly gain. Trading
will end early today at 12:05 p.m., instead of the usual 1 p.m.
close, and the exchange will be shut tomorrow for Christmas.
``There was a little bit of fund buying early,'' said Ron
Kramer, a partner at Smith & Moore, a copper-trading company in New
York. ``It's just quiet.''
A futures contract is an obligation to buy or sell a commodity
at a set price by a specific date.
--Editor: McKiernan |
