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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (21119)	9/24/2003 12:07:20 PM
From: Stephen O	Respond to of 39344

Copper, Other Metals Climb in London as U.S. Demand Seen Rising Sept. 24 (Bloomberg) -- Copper and other industrial metals gained in London on speculation that growth in the U.S. will accelerate in coming months. U.S. economic growth may strengthen, spurred by a weakening dollar, said Robert McTeer, president of the Federal Reserve Bank of Dallas, yesterday. The nation's industrial production rose in August, the first back-to-back gain since February, the Federal Reserve said last week. ``The upward trend has the potential to continue,'' said Ingrid Sternby, a metals analyst at Barclays Capital in London, in an e-mailed report. ``Base metal demand could significantly benefit from an upswing in the U.S. manufacturing sector.'' Copper for delivery in three months rose $12.50, or 0.7 percent, to $1,826 a metric ton in ring trading on the London Metal Exchange as of 12:05 p.m. It has gained 17 percent this year and 24 percent in the past 12 months. Copper is used in wire and pipes in electrical equipment and buildings. On average, industrial, or base, metals prices could gain another 15 percent before early 2005, Barclays Capital said in its bimonthly commodities report yesterday. The U.S. is the largest consumer of these metals. Base metals will also benefit from new investor interest, Sternby said in the report. Commodities have gained this year as investors anticipated a recovery in the world economy that would spur demand for raw materials. Among other metals for delivery in three months, aluminum advanced $7, or 0.5 percent, to $1,438 a ton. It has gained 6.5 percent this year, making it the worst-performing metal on the London Metals Exchange. Zinc jumped $9, or 1.1 percent, to $849 a ton, lead climbed $1, or 0.2 percent, to $538 and tin rose $15, or 0.3 percent, to $4975. Nickel surged $125, or 1.2 percent, to $10,310 a ton, more than a three-year high. Analysts including Sternby have forecast that nickel will rise further because of low inventories, a lack of new mining projects and rising Chinese demand for stainless steel, in which it is a key ingredient. --Laura Humble in London (44) 20 7330 7727, or lhumble1@bloomberg.net, through the Oslo bureau. Editor: Evensen