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

To: Stephen O who wrote (1411)	3/29/2006 3:14:09 PM
From: Stephen O	Read Replies (1) \| Respond to of 2131

Copper Prices Rise to Records in London, N.Y., Erasing Losses 2006-03-29 11:53 (New York) By Chanyaporn Chanjaroen March 29 (Bloomberg) -- Copper futures rose to records in London and New York, erasing earlier losses, on speculation that rising demand for the metal from both consumers and investment funds will create a production shortfall. Copper demand will rise 6.7 percent and outpace supply by 193,000 metric tons this year, extending the shortfall into next year, Bloomsbury Minerals Economics said yesterday in a report. ``It's a very strong market,'' Marc Morgan, a futures trader at Triland USA Inc., said today in a phone interview. ``People rather stay long than short.'' Copper for delivery in three months rose as much as $40, or 0.8 percent, to $5,355 a metric ton ($2.429 a pound) at 5:28 p.m. local time on the London Metal Exchange. That beat the record set yesterday by $20. The metal has tripled in the past three years. Earlier today, copper posted a 1 percent loss, trading at $5,258.50 a ton. On the Comex division of the New York Mercantile Exchange, copper futures for May delivery gained as much as 2.05 cents, or 0.8 percent, to $2.449 a pound, beating yesterday's record by 1.2 cents. The contract traded at $2.446 at 11:41 a.m. local time. A futures contract is an obligation to buy or sell a commodity at a fixed price for delivery by a specific date. ``We are living in the midst of the biggest base-metals bull market in the past 50 years, both in terms of its rise and its terms of duration,'' Jon Bergtheil, head of global metals strategy at JP Morgan Securities Ltd. in London, said today in a report. Rise in Inventory Inventory of copper monitored by the LME rose for the first day in two weeks. Stockpiles gained 450 tons, or 0.4 percent, to 121,375 tons. Still, that is less than three days of global consumption. Record prices have prompted mining companies such as Canada's First Quantum Minerals Ltd. to restart or expand production. Papua New Guinea has appointed a World Bank adviser to review a mining ban on Bougainville Island, which contains what was once the world's largest copper mine. The review team will have a year to complete its study and advise the government, Nason Moat, press secretary to the nation's mining minister, Sam Akoitai, said today. Among other metals for delivery in three months on the LME, aluminum fell $25, or 1 percent, to $2,518 a ton. Before today, aluminum had gained 31 percent in the past year. OAO Sual Group, Russia's second-largest aluminum producer, said it plans to spend about $1.5 billion in the next five years on plant upgrades and increasing production. --With reporting by Samantha Shields in Moscow and Tan Hwee Ann in Melbourne. Editor: Casey (pjm/dje)