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Strategies & Market Trends : Commodities - The Coming Bull Market -- Ignore unavailable to you. Want to Upgrade?

To: feminvstr who wrote (1312)	5/24/2002 6:29:12 PM
From: Stephen O	Respond to of 1643

Copper Rises on Expectation of Stronger Demand as Economy Grows 2002-05-24 10:49 (New York) Copper Rises on Expectation of Stronger Demand as Economy Grows New York, May 24 (Bloomberg) -- Copper rose for a fourth session after the U.S. government confirmed that the economy rebounded in the first quarter, signaling stronger industrial demand for metals. The U.S. economy grew at a 5.6 percent annual pace in the first three months of the year, up from a 1.7 percent growth rate in the previous quarter, the Commerce Department said. While the department lowered the rate from an earlier estimate of 5.8 percent, traders said the tripling of growth means automakers and other manufacturers will be buying more copper. ``The economy is growing,'' said Tony Nappi, a copper trader at Triland USA Inc. in New York. ``That's really what we need to see to keep copper prices going higher.'' Copper for July delivery rose as much as 0.8 cent, or 1.1 percent, to 74.4 cents a pound on the Comex division of the New York Mercantile Exchange. Prices have risen 2.1 percent this week, leaving them 6.2 percent lower than a year earlier. In London, copper for delivery in three months rose as much as $15, or 0.9 percent, to $1,625 a metric ton (73.71 cents a pound) on the London Metal Exchange. Copper futures in New York have soared 23 percent from a 14- year low in November on expectations for strengthening demand as the U.S. economy recovers from recession last year. Prices rose even as inventories of the metal in London exchange warehouses worldwide continued to rise, reaching a record 980,075 tons on May 3. The inventory level has fallen 2.2 percent since then to 958,075 tons, a possible reflection that demand has begun to pick up, traders said. ``The market is taking these inventory declines as a positive sign of demand,'' though it will take some time to confirm that they don't reflect the movement of metal among warehouses, Nappi said. --Claudia Carpenter in the New York newsroom (212) 318-2346 or at ccarpenter2@bloomberg.net with reporting by Siobhan Hughes in Washington. Editor: Bixby