Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Corriente Resources V.CTQ Junior Exploration Co. -- Ignore unavailable to you. Want to Upgrade?

To: WillC who wrote (1401)	7/5/2000 6:50:57 PM
From: Flapdoodl	Respond to of 1416

A good take on world copper supplies. Global Copper Demand Seen Exceeding Supply This Year London, June 20 (Bloomberg) -- Global copper consumption will exceed supply this year for the first time in five years as producers fail to keep up with demand from house builders, an industry group said. The International Copper Study Group, a Lisbon-based researcher set up by the governments of 24 copper producers and consumers, projected the shortfall at 82,000 metric tons. ``The forecast accounts for supply disruptions and an expected shortfall in mine production available for conversion to refined copper,'' the group said. ``Cutbacks in mine output and deferment of new projects have led to the projected shortage.'' Starts of multi family homes in the U.S., the world's biggest copper user, rose 2.1 percent in May, following an 11 percent gain in April. Builders use copper for pipes and wiring. Copper for three-month delivery fell as much as $9, or 0.5 percent, to $1,796 a metric ton on the London Metal Exchange today after rising for five straight trading days. Copper has rallied more than 5 percent in the past two weeks. Global copper consumption will likely rise 3.9 percent to 14.76 million tons this year, outpacing output, expected to grow 2.1 percent to 14.68 million tons, said Thomas Baack, the ICSG's chief statistician in Lisbon. Outlook Next year, the deficit may widen almost four fold, to 300,000 tons as production expands a further 2 percent while demand grows 3.9 percent, the group said. Copper inventories, as monitored by the LME, have dropped 32 percent since March 8, falling every trading day but one. The inventories now stand at 573,800 tons, the lowest level since December 1998. Copper producers idled some mines last year to shore up copper prices, which fell to a 12-year low in May 1999. The metal has risen more than 26 percent since then as economic growth in the U.S., Asia and Europe whipped up demand. ``We'll definitely see a copper deficit, but how big will it be?'' said Kevin Norrish, a minerals economist at Barclays Capital. ``The key factor is what's going to happen in the U.S. in the second half of the year.'' If economic growth in the U.S. slows down considerably while companies restart idled mines, the 2001 copper deficit will be smaller than the group has predicted, he said. Similar to copper, aluminum for three-month delivery has rallied 9 percent during the past two weeks, boosted by rising demand and smelter shutdowns in North America, caused by high energy costs. Meanwhile, nickel has shed 22 percent since the end of May as workers at the world's second-largest producer Inco Ltd. dropped plans for a strike, easing concerns about nickel supplies. --Vladimir Todres in the London newsroom (44 20) 7673 2347, or at vtodres@ bloomberg.net/jah/jxc View Next 10 Messages \| Respond \| Previous \| Next Bookmark this Subject Ignore this Person View SubjectMarks Terms of Use Enter symbols or keywords for search: QuotesStock TalkChartsNewsPeople Symbol lookup Subject Titles Only Full Text This Subject Only Go to Top Got a comment, question or suggestion? Contact Silicon Investor.