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

To: Mac who wrote (1361)	1/25/2006 12:22:25 PM
From: Stephen O	Read Replies (1) \| Respond to of 2131

Copper Gains to Record in London on Chinese Demand, Inventory 2006-01-25 06:15 (New York) By Julie Tay Jan. 25 (Bloomberg) -- Copper rose to a record in London on speculation demand growth may accelerate after China today said its economy grew more than expected and as stockpiles of the metal fell. China, the world's largest consumer of copper used to make cables and pipes, expanded 9.9 percent last year, overtaking the U.K as the world's fourth-largest economy. Copper inventory monitored by the London Metal Exchange declined 4.7 percent over four consecutive days to 101,500 metric tons, according to exchange data today. ``The Chinese data indicates a continuation of strong GDP growth in China and Asia enabling further demand growth for commodities and the potential maintenance of commodity prices at historically high levels,'' John Meyer, a London-based analyst at Numis Securities Ltd., said in an e-mailed report today. Copper for delivery in three months gained to a record $4,700 a metric ton on the London Metal Exchange. It traded $48, or 1 percent higher, at $4,696 at 10:47 a.m. local time. Numis may increase its copper price estimate as it may ``prove to be overly conservative'', Meyer said, without elaborating. Meyer's current forecast is for copper to decline to an average of $3,086 a metric ton this year. China's gross domestic product rose to 18.2 trillion yuan ($2.26 trillion) after expanding 10.1 percent in 2004, the nation's statistics bureau said in Beijing. Economists forecast growth 9.8 percent for the full year, according to a Bloomberg News survey. `Remain High' ``Strong growth demand for China is a notable positive pointer on the demand side,'' Paris-based analyst Alain William at ING Wholesale Banking said in a report. ``Prices should remain high.'' Copper may gain to an average of $2 a pound ($4,409.20) this year, up from $1.66 last year as stockpiles remain low, he added. Chinese processors such as cable makers are buying copper to keep plants running during the Lunar New Year, because Chinese markets are closed from Jan. 30 to Feb. 3. --Editor: Griffiths.