Copper Rises for a Second Day on Speculation Demand Will Expand
2006-02-14 05:06 (New York)
By Chanyaporn Chanjaroen
Feb. 14 (Bloomberg) -- Copper rose for a second consecutive
day in London as investment funds increased their holdings on
speculation that demand for the metal, which is used in wires and
tubes, will accelerate this year.
Demand will rise 5.2 percent this year to 17.8 million
metric tons, led by China, JPMorgan Chase & Co. said in a Feb. 3
report. Growth last year was 1.1 percent, the bank estimated.
Fund investments in commodities will rise almost 50 percent to
$120 billion this year, according to Standard Bank.
``Investment funds believe that there's more move on the
upside,'' Ingrid Sternby, a London-based analyst at Barclays
Capital, said today in an interview. Barclays is one of 11
companies that trade on the floor of the London Metal Exchange.
Copper for delivery in three months on the LME was $34, or
0.7 percent, higher at $4,904 a ton as of 10:04 a.m. in London.
The contract has gained 12 percent this year, after adding 40
percent last year.
Stockpiles of copper monitored by the LME rose for a second
consecutive day, by 3,225 tons, or 3.2 percent, to 105,450 tons,
the exchange said today. All stock gains took place in Singapore
and Busan, South Korea, which are the nearest delivery points to
China, the world's largest consumer of copper.
All other LME-traded metals for delivery in three months
rose. Aluminum gained $16, or 0.6 percent, to $2,475 a ton and
lead climbed $43, or 3.6 percent, to $1,230. Nickel rose $225, or
1.5 percent, to $15,275 and tin added $50, or 0.6 percent, to
$7,825. Zinc was up $62, or 2.9 percent, to $2,180.
--Editor: Wallace |
