Copper Advances in London on Speculation Demand Strengthening by Anna Stablum May 6 (Bloomberg) --
Copper rose in London on speculation that demand is strengthening after stockpiles shrank and higher prices being paid for the metal in China suggest more supplies may be withdrawn from warehouses. Global inventories monitored by the London Metal Exchange dropped for 16 straight sessions through May 5. Copper booked for delivery now makes up 18 percent of total stockpiles, up from 1.4 percent at the start of the year.“The general draw down in copper will probably continue, and it is obviously supportive,” Dan Smith, an analyst at Standard Chartered Plc in London, said by phone. “We are quite bullish copper short term, and for the time being, the general trend across metals is going to be up. Copper for delivery in three months rose $70, or 1.6 percent, to $4,600 a metric ton on the LME at 12:37 p.m. local time. The metal for July delivery gained 2.15 cents, or 1 percent, to $2.1040 a pound in electronic trading on the New York Mercantile Exchange’s Comex division. Copper for delivery in August closed at 37,980 yuan ($5,568) a ton today on the Shanghai Futures Exchange. The premium “implies imports will remain high in May,” Smith said. China imported a record amount of copper in March and preliminary figures for April may be released May 12, according to the Web site of China’s customs office. Inventories in LME-monitored warehouses in Singapore, a location close to China, have plunged 91 percent since reaching this year’s peak on April 14. The metal, used in electrical wiring and plumbing, has gained almost 50 percent this year in London, buoyed by Chinese demand. |
