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Gold/Mining/Energy : Copper - analysis -- Ignore unavailable to you. Want to Upgrade?

To: Richard Mazzarella who wrote (189)	9/20/2000 11:20:21 AM
From: Stephen O	Read Replies (1) \| Respond to of 2131

Copper Prices Fall on Signs of Economic Slowdown in Europe 9/20/0 10:50 (New York) Copper Prices Fall on Signs of Economic Slowdown in Europe New York, Sept. 20 (Bloomberg) -- Copper fell almost 2 percent, the biggest drop in three months, as signs of an economic slowdown in Europe raised concern that demand from builders and manufacturers could weaken. German business confidence fell in August for a third month and Italy's economy grew less than expected in the second quarter. A weakening of demand for copper wire and pipes in Europe could end the five-month rally that sent prices to a three-year high last week. ``Copper being an industrial metal is responding to manufacturing worries,'' said Rick Hirsch, president of Stamford, Connecticut-based Sogemin Metals Inc., a subsidiary of Belgian mining company Union Miniere SA. ``There's a general idea that economies are slowing globally.'' Copper for December delivery fell as much as 1.55 cents, or 1.7 percent, to 91.5 cents a pound on the Comex division of the New York Mercantile Exchange, the biggest one-day decline for a most-active contract since June 20. While prices have dropped 3.1 percent from the three-year high of 94.4 cents on Sept. 13, they still are up 23 percent from an eight-month low in April. In London, copper for delivery in three months fell as much as $31, or 1.6 percent, to $1,967 a metric ton (89.22 cents a pound) on the London Metal Exchange. Accelerating economic growth in Europe contributed to this year's rally in copper prices. European demand for copper reached 1.6 million tons during the first four months of this year, up 13 percent from the same period in 1999, the World Bureau of Metal Statistics said in a recent report. Europe accounts for 30 percent of world copper consumption, and Germany and Italy are the biggest users of the metal in the region, the U.K.-based private research firm said. Rising U.S. Inventories Rising inventories in Comex-monitored warehouses could signal weakening demand for copper in the U.S. Supplies of the metal have risen for three straight reporting days, gaining 0.5 percent to 62,366 tons since reaching a two-year low on Thursday. Pittsburgh-based Alcoa Inc., the world's biggest aluminum maker, said this week that third-quarter profit will be below analysts' forecasts because of slowing sales in the building and transportation industries and increased energy costs. Builders account for 40 percent of U.S. demand for copper, according to the Copper Development Association, a New York-based industry group. A typical single-family home contains about 440 pounds of the metal, according to the association. --Claudia Carpenter in the New York newsroom (212) 318-2346 or at ccarpenter2@bloomberg.net/jb