Copper Rises in N.Y. on Decline in Stockpiles, Strike Concerns
By Halia Pavliva
bloomberg.com
April 24 (Bloomberg) -- Copper futures rose to the highest in almost a week in New York as stockpiles declined and concerns mounted over potential supply disruptions from Peru, the world's second-biggest producer of the metal behind Chile.
Workers at Southern Copper Corp.'s Ilo smelter in southern Peru rejected a wage offer from the company on April 20 and said they may begin a strike before the end of the month. Southern Copper is the world's fifth-biggest producer of the metal. Copper stockpiles shrank for a third session in a row.
``Today's decline in stocks and nervousness about the Peruvian strike action lend support'' to copper prices, Edward Meir, a commodities analyst at Man Financial Inc. in Darien, Connecticut, said today in a report.
Copper futures for July delivery gained 2.65 cents, or 0.7 percent, to $3.672 a pound at 8:11 a.m. on the Comex division of the New York Mercantile Exchange, after reaching $3.689, the highest for a most-active contract since April 18. Copper has posted seven straight weekly gains, the longest rally in a year, and gained 16 percent this month alone.
Inventories monitored by exchanges in London, New York and Shanghai declined 0.8 percent today to 264,950 metric tons, the lowest since Jan. 26, according to Bloomberg data. Global stockpiles have fallen 7 percent since March 15, according to Bloomberg data.
Inventories tracked by the London Metal Exchange, the world's biggest metals market, fell 2,025 metric tons, or 1.2 percent, to 166,125. It was the sixth straight decline and left stockpiles at the lowest since Dec. 7. Inventories have dropped 24 percent since Feb. 1.
On the LME, copper for delivery in three months rose $40, or 0.5 percent, to $8,050 a metric ton as of 1:19 p.m. local time. Yesterday, the metal closed above $8,000 yesterday, only the second time that's happened since September.
A futures contract is an obligation to buy or sell a commodity at a fixed price for delivery by a specific date.
To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net
Last Updated: April 24, 2007 08:24 EDT |
