Copper, Little Changed in New York, May Rise on German Demand
2006-03-07 09:01 (New York)
By Claudia Carpenter
March 7 (Bloomberg) -- Copper prices, little changed in New
York, may rise on speculation that faster growth in Europe will
increase consumption in Germany, the world's fourth-biggest
consumer of the metal.
Orders for goods made in Germany increased 1.4 percent in
January compared with December, the Economy and Technology
Ministry in Berlin said today. The European copper market is
``getting tighter,'' Barclays Capital said in a report today.
The European Central Bank is ``talking about raising
interest rates, which really is a response to economic strength
in Europe,'' said Daniel Vaught, an analyst at A.G. Edwards &
Sons Inc. in St. Louis. ``That certainly implies improved demand
for raw materials such as copper.''
Copper futures for May delivery were at $2.198 a pound at
8:44 a.m. on the Comex division of the New York Mercantile
Exchange. Prices dropped 3 percent yesterday and 0.2 percent on
March 3. A futures contract is an obligation to buy or sell a
commodity at a set price by a specific date.
China is the world's biggest copper buyer, followed by the
U.S. and Japan, according to International Copper Study Group
estimates.
--With reporting by Matthew Brockett in Frankfurt. Editor: Enoch |
