Copper May Break Record in 2008, Standard Bank Says 2007-10-11 11:24 (New York)
By Chanyaporn Chanjaroen
Oct. 11 (Bloomberg) -- Copper may break a record $8,800 a
metric ton as a rally will extend into the first half of next
year, Standard Bank Group Ltd. said.
A ``robust'' outlook for demand from China, the world's
largest user of the metal, supply disruptions at mines and low
stockpiles will boost the metal price in the next six to nine
months, the bank said in a report dated yesterday. Prices will
average $7,015 a ton next year then $6,770 a ton in 2009,
forecast Standard Bank, Africa's biggest lender by assets.
``Of all the base metals in our view, it is one of the
fundamentally strongest,'' the report said.
Copper has more than quadrupled since 2002, trading at a
record in May 2006, on expanding demand from China. The rally
boosted sales at mining companies including BHP Billiton Ltd.,
the world's largest. Nexans SA, the world's largest consumer of
the metal, has had to borrow more to finance higher costs of
holding copper stockpiles.
Chinese consumers may respond to sustained high prices by
using up stockpiles and awaiting declines as was the case in 2006
after the metal peaked at $8,800 a ton, the report said. ``This
could again provide a ceiling to copper prices,'' the report
said.
Copper for delivery in three months added $10, or 0.1
percent, to $8,190 a ton as of 9:50 a.m. on the London Metal
Exchange.
--Editor: Farrand (ttt/tmf/rjj) |
