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

To: Stephen O who wrote (1051)	12/16/2004 10:29:20 AM
From: Stephen O	Respond to of 2131

Copper Rises for 6th Day in New York as Dollar Drops vs Euro By Simon Casey Dec. 16 (Bloomberg) -- Copper futures rose for a sixth day in New York after the dollar weakened against the euro on expectations a government report will show the U.S. current- account deficit widened to a record. The metal used in power cables and plumbing has gained 6.5 percent in the last six trading sessions, reaching a two-week high. The dollar's slide made copper more affordable for investors and consumers with euros. ``The weak dollar once again dominates,'' Edward Meir, an analyst at Man Financial in New York, said in an e-mailed report. Copper for delivery in three months on the Comex division of the New York Mercantile Exchange rose $1.25, or 0.9 percent, to $1.4280 as of 8:41 a.m. local time. The metal closed at a 15- year high of $147.45 on Oct. 8. Copper also gained on the London Metal Exchange. Metal for delivery in three months rose $41.50 to $3,053 a metric ton. The dollar is down 2.8 percent against the euro since Federal Reserve Chairman Alan Greenspan told the European Banking Congress in Frankfurt on Nov. 19 that foreigners may grow weary of financing the shortfall in the current account, the broadest gauge of trade, and channel money into other currencies. The dollar was up 0.2 percent versus the euro at $1.3389 according to EBS, an electronic currency dealing system, after earlier falling as much as 0.1 percent. It traded at a record low of $1.3469 on Dec. 7. Rising Demand Global demand for copper used in electrical wires and plumbing rose 6.8 percent to 16.6 million metric tons in the fiscal year, said Norddeutsche Affinerie AG, Europe's largest copper producer. The Hamburg-based company said today its fourth- quarter net income rose 10-fold to 10 million euros on higher sales and copper prices. Consumption, led by a 14 percent jump in China, exceeded production by as much as 900,000 tons in the fiscal year, Norddeutsche said. Consumers have withdrawn metal from LME-monitored stockpiles to make up for the shortfall. Inventory fell 0.6 percent to 55,075 tons, the exchange said in a daily report. The total has dropped 87 percent this year. Mining companies are planning new capacity to satisfy demand. Mexico's Industrias Penoles SA said yesterday it obtained a $155-million loan from BNP Paribas to finance a 55,000-ton copper mine. Canada's Aur Resources Inc. said on Dec. 14 it will build a mine in Newfoundland that will produce about 18,600 tons from late 2006. Most other metals in London also rose. Aluminum increased $19.5 to $1,834, tin gained $50 to $8,850 and nickel rose $125 to $13,375, while lead dropped $2 to $946. Zinc traded up $25 at $1,212, its highest in four-years. --With reporting by Taizo Hirose in Tokyo and Richard Blackden in London. Editor: A. Brown