Copper Climbs on Signs of Rebounding Demand in China, U.S.
2007-01-23 09:25 (New York)
By Halia Pavliva
Jan. 23 (Bloomberg) -- Copper prices in New York rose for the
third session in a row on signs of rebounding demand in China, the
biggest consumer of the metal, and the U.S., the second-largest.
China's imports of copper and related products jumped 11
percent in December, marking the first year-on-year gain since
October 2005. An index of leading U.S. economic indicators
probably rose for a fourth straight month in December, according
to economists surveyed by Bloombeg. The gauge points to the
direction of the economy over the next three to six months.
``Steady Chinese demand is keeping supplies tight,'' and U.S.
economic data may support copper prices, Edward Meir, an analyst
at Man Financial Inc. in Darien, Connecticut, said in a report,
Copper futures for March delivery increased 4.55 cents, or
1.8 percent, to $2.575 a pound at 9:24 a.m. on the Comex division
of the New York Mercantile Exchange. Prices climbed 1.5 percent in
the previous two sessions.
A futures contract is an obligation to buy or sell a
commodity at a set price for delivery by a specific date.
David Lilley, a partner at Red Kite Management Ltd., which
has base metals-hedge funds worth more than $1 billion, says
copper prices will rebound on rising industrial and housing demand
in China and the U.S.
The metal has tumbled far enough from an all-time high in May
to have reached ``fair value,'' and investors should buy now,
Lilley, 40, said in an interview on Jan. 20 in Shanghai. ``Copper
prices have gone down further than I expected,'' he said. ``It is
a good time to buy.''
Before today, prices had dropped 37 percent from a record
$4.04 a pound on May 11.
--With reporting by Courtney Schlisserman in Washington and
Xiaowei Li in Beijing. Editor: McKiernan. |
