Copper Rises in N.Y. on Speculation European Demand Will Climb
2006-12-05 14:09 (New York)
By Millie Munshi and Halia Pavliva
Dec. 5 (Bloomberg) -- Copper prices in New York rose to the
highest in more than three weeks on speculation demand will climb
in Europe as the region's economy accelerates.
Growth in European service industries, the biggest part of
the economy, rose to a four-month high in November, data from the
Royal Bank of Scotland Group Plc showed. Copper, up 59 percent
this year, has declined from a record in May because of rising
output and a slowdown in U.S. home building.
``The European economy is beginning to fire up,'' said
Patrick Chidley, an analyst at Barnard Jacobs Mellet LLC in
Stamford, Connecticut. ``Demand is coming off in the U.S. If
Europe's going to take some of that slack, demand may pick up.''
Copper futures for March delivery gained 7.1 cents, or 2.2
percent, to $3.247 on the Comex division of the New York
Mercantile Exchange, the highest close since Nov. 9. The record on
May 11 was $4.04.
Copper has been buoyed by the weaker dollar, which makes the
dollar-priced metal cheaper for buyers using other currencies,
said Stuart Flerlage, managing principal at NuWave Investment
Corp.
The European Central Bank is poised to raise its benchmark
interest rate this week, increasing the likelihood the dollar will
resume an eight-week slide against the euro.
U.S. Factory Orders
Copper, used in cars and air conditioners, pared gains after
a government report showed orders placed with U.S. factories fell
in October by the most in six years, suggesting manufacturing will
combine with the housing market in slowing the economy this
quarter. Prices had climbed as much as 3.8 percent.
Fewer orders were placed with makers of commercial aircraft,
automobiles and construction equipment, the Commerce Department
said. Builders are the biggest consumers of copper, used in pipes
and wires.
Copper also got a boost by gains in other industrial metals,
said John Gross, director of metals management at Scott Brass Inc.
in Cranston, Rhode Island.
In London, nickel rose to the highest in 19 years, lead
climbed to a record and aluminum increased to a six-month high.
On the London Metal Exchange, copper for delivery in three
months gained $175, or 2.5 percent, to $7,175 a metric ton.
--With reporting by Dara Doyle in Dublin and Courtney Schlisserman
in Washington. Editor: McKiernan |
