Societe Generale Doubles Forecast for Copper Output Shortfall
2005-11-21 07:04 (New York)
By Simon Casey
Nov. 21 (Bloomberg) -- Societe Generale, one of 11 companies
trading on the floor of the London Metal Exchange, doubled its
forecast for the shortfall in copper production this year to
500,000 metric tons.
Output from mines and recycled scrap will rise 3.5 percent
this year to 16.4 million tons, London-based analyst Stephen
Briggs wrote in a report today. In an Oct. 3 report Briggs said
production in 2005 would grow 6.2 percent, leaving a deficit of
250,000 tons.
``Production growth has fallen far short of all
expectations,'' Briggs said in the report.
Copper prices have rallied to a record as producers struggle
to meet demand for the metal, which is used to make wiring and
plumbing. Output was curbed in October by a fuel shortage in
Zambia, Africa's largest copper-producing nation. Asarco LLC, the
No. 2 U.S. copper producer, lost production after a four-month
strike, which ended earlier this month.
Copper prices may not average less than $3,500 a ton in
2006, Briggs also said. In his Oct. 3 report he forecast they
would average $3,120.
Copper for delivery in three months on the London Metal
Exchange was unchanged at $4,200 a ton as of 11:56 a.m. local
time. Earlier today it rose as high as $4,243, equaling the
record set Nov. 18.
--Editor: Wallace |
