Copper Climbs Most in a Week as Chinese Inventories Decline
2007-11-23 09:11 (New York)
By Millie Munshi
Nov. 23 (Bloomberg) -- Copper rose the most in a week after
inventories plunged in China, the world's biggest user of the
metal.
Stockpiles monitored by the Shanghai Futures Exchange
dropped 21 percent to 44,855 metric tons this week, marking the
biggest decline since the week ended Jan. 25. Copper, used in
pipes and wires, has more than tripled in the past four years as
demand grew in China, the world's fastest-growing major economy.
``The market is doing well after the decline in Shanghai
inventories,'' said Eric Wittenauer, an industrial-metals
analyst at A.G. Edwards & Sons Inc. in St. Louis. ``The drop in
inventories reiterates that in the near term, the supply
situation remains tight.''
Copper futures for March delivery gained 8.35 cents, or 2.9
percent, to $3.0135 a pound at 9:08 a.m. on the Comex division
of the New York Mercantile Exchange. A close at that price would
be mark the biggest percentage gain for a most-active contract
since Nov. 14.
The metal has still dropped 6 percent this week on concern
that slower economic expansion will curb demand in the U.S., the
world's second-largest copper consumer. Federal Reserve
officials this week cut their 2008 U.S. growth forecasts.
``The dominant downtrend is likely to remain intact as
concerns about the economy linger,'' Wittenauer said.
On the London Metal Exchange, copper for delivery in three
months gained $105, or 1.6 percent, to $6,670 a ton ($3.02 a
pound). The price has climbed 5.5 percent this year.
--Editor: McKiernan |
