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To: ms.smartest.person who wrote (1046)	4/30/2006 11:01:55 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

Phelps Dodge forecasts 2Q copper price of $3 per pound Source: Dow Jones Phelps Dodge is forecasting that copper prices will average around $3 a pound during the second quarter, Arthur Miele, senior vice president for marketing, told analysts in a conference Thursday following the release of the company's first-quarter results earlier in the day. For the year 2006, Phelps Dodge looks for global copper consumption to grow by around 4%, due to a strong global economy. "It is hard to find any country that is experiencing an economic slowdown or recession in the near term," said Miele. Meanwhile, the company expects global refined production to rise 5.5% to 6.5% for the year. Phelps Dodge looks for the market to be nearly balance or have a modest surplus for the year. "However, because the copper pipeline is so stressed, even modest production shortfalls could have an immediate and significant impact on the market balance," he said. Thus, the company looks for copper prices in 2006 to be "substantially higher" than a recent analyst poll that had suggested prices would average around $2.15, he said. In particular, Miele cited strong growth in China as a key factor behind the strong demand. The country is now widely regarded as the world's largest copper consumer. The Chinese government last week reported that its economy grew 10.2% in the first quarter, compared to a year ago. U.S., European and Japanese copper demand are also improving, he reported. Meanwhile, there have been a number of supply disruptions around the world due to factors such as strikes and mechanical failures at various companies. Phelps Dodge is forecasting that copper prices will average around $3 a pound during the second quarter, Arthur Miele, senior vice president for marketing, told analysts in a conference Thursday following the release of the company's first-quarter results earlier in the day. For the year 2006, Phelps Dodge looks for global copper consumption to grow by around 4%, due to a strong global economy. "It is hard to find any country that is experiencing an economic slowdown or recession in the near term," said Miele. Meanwhile, the company expects global refined production to rise 5.5% to 6.5% for the year. Phelps Dodge looks for the market to be nearly balance or have a modest surplus for the year. "However, because the copper pipeline is so stressed, even modest production shortfalls could have an immediate and significant impact on the market balance," he said. Thus, the company looks for copper prices in 2006 to be "substantially higher" than a recent analyst poll that had suggested prices would average around $2.15, he said. In particular, Miele cited strong growth in China as a key factor behind the strong demand. The country is now widely regarded as the world's largest copper consumer. The Chinese government last week reported that its economy grew 10.2% in the first quarter, compared to a year ago. U.S., European and Japanese copper demand are also improving, he reported. Meanwhile, there have been a number of supply disruptions around the world due to factors such as strikes and mechanical failures at various companies. metalsplace.com