Goldman Sachs also recommended buying zinc and crude oil, saying economic growth will probably be strong enough to tighten some markets with supply constraints in the second half, leading prices to climb. JPMorgan Chase & Co. said copper is “well supported” and “will not collapse.” Yesterday, the metal had the biggest drop in almost two weeks.

“We believe that current copper-price levels offer an attractive opportunity to establish long positions in the metal,” Goldman Sachs analysts, led by the London-based head of commodity research Jeffrey Currie, said today in a report.

Copper futures for July delivery advanced 2.15 cents, or 0.5 percent, to $4.013 a pound at 1:12 p.m. on the Comex in New York. Yesterday, the metal fell 3.2 percent, the most since May 11.

Futures have dropped 14 percent from a record $4.6575 a Feb. 15, partly on concern that interest-rate increases in China, the world’s biggest consumer of industrial metals, will curtail demand.

“The question is not if Chinese consumption will grow by 12 percent or 9 percent, but that it is growing,” Christian Schirmeister, an executive director of JPMorgan Chase Bank N.A., said today at a conference in Singapore. “China physical demand is finally beginning to show up in the nearby spreads, although the volumes still are soft.”

On the London Metal Exchange, copper for delivery in three months gained $67, or 0.8 percent, to $8,861 a metric ton ($4.02 a pound). Aluminum, lead, nickel, zinc and tin also advanced.

To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter@bloomberg.net.

Source: http://www.bloomberg.com/news/2011-05-24/copper-rises-as-goldman-sachs-recommends-buying-on-demand-growth.html

Copper for delivery in three months on the London Metal Exchange (LME) was at $8 885 a tonne by 1258 GMT, adding to modest gains on Thursday when it bounced off five-month lows.

The metal used in power and construction closed at $8 725 a ton on Thursday, rising back from its lowest since Dec 1 hit earlier in that session.

"It was a pretty impressive performance (yesterday) and shows there is underlying interest," Credit Agricole analyst Robin Bhar said.

"We've still got to be cautious because the volatility is telling us there is a high degree of uncertainty in the market."

The dollar extended losses against the euro on Friday after U.S. inflation data did little to sway Federal Reserve rate hike expectations.

A weaker dollar makes commodities like metals cheaper for holders of other currencies.

In macroeconomic news that may move metals via currencies, investor attention will turn to U.S. durable goods and factory orders benchmark revisions, due at 1400 GMT.

On Thursday, upward revisions to March U.S. retail sales data suggested consumer spending in the first quarter might have been stronger than initially thought, although April's data posted its smallest rise in nine months.

For the week, LME copper is largely flat, following a fall of some 5 percent in a broad commodity rout the previous week.

But some analysts warn of more volatility in commodity prices due to uncertainty over the euro zone debt crisis and more monetary tightening measures by top consumer China.

Europe's No.2 copper producer KGHM expects copper prices to average between $8 000 and $9 000 per tonne this year, it chief executive said.

ALUMINIUM STOCKS

Copper demand from China is likely to remain strong despite the country's moves to slow growth to control inflation, the CEO of Europe's largest copper producer Aurubis said.

China hiked its bank reserve requirement ratio yet again on Thursday, signalling that containing inflation and soaking up excess cash remained its top priority even after signs the economy was slowing down.

"Prices will likely move in line with the sentiment surrounding the Chinese fiscal and monetary policy over the coming weeks," Fairfax said in a note.

"The main questions are, are we coming to the end of the government's tightening program? And how much has already been priced into the market?"

Stocks of copper in LME warehouses rose to 468 525 tonnes, nearly 35 percent above levels seen early in December, latest data showed.

LME stocks of aluminium rose by 32 075 tonnes to 4 622 825 tonnes -- within touching distance of the record high above 4,64-million tonnes hit in January 2010.

"It's not surprising because the prompt date is next Wednesday," Bhar said, referring to the expiry for the May contract.

Cash aluminium traded at a premium against the three month contract of $19,50 versus $8 on Thursday.

Three-month aluminium was at $2 615,50 a tonne from $2 615 a tonne. Zinc was at $2 188 a tonne from $2,140 while lead was at $2 336,75 a tonne from $2 305.

Tin was at $29 400 from $2 ,300 a tonne and nickel at $24 730 from $24 500 a tonne.

Source: http://www.miningweekly.com/article/copper-extends-gains-as-the-dollar-weakens-2011-05-13

(Reporting by Brad Haynes; editing by Jeffrey Benkoe) Keywords: CHILE ECONOMY/TRADE (simon.gardner@thomsonreuters.com; +562-370-4250; Reuters Messaging: simon.gardner.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Source: http://classic.cnbc.com/id/42957081

Chinese demand may recover to grow 6 percent this year, Charlie Sartain, who runs the Zug, Switzerland-based company’s copper business, said in an interview in Santiago yesterday. Demand is also recovering in Europe and the U.S., he said.

Copper prices jumped about 30 percent last year as mining companies struggled to meet rising demand. The metal fell 1.8 percent in the first quarter of this year, the biggest decline for the period since 2001, as Chinese buyers consumed existing stockpiles and the country boosted scrap imports.

“Both of those trends I think will have an endpoint within the next couple of months,” Sartain said. “Then we’ll see demand picking up again.”

Copper demand in the U.S. may grow 6 percent this year while mine supply will lag behind demand again this year as suppliers face disruptions, Sartain said.

The Collahuasi mine in northern Chile was affected by heavier-than-normal rainfall in the first quarter, John MacKenzie, the head of Anglo American Plc (AAL)’s copper business said in an April 1 interview. Anglo and Xstrata each own 44 percent of Collahuasi.

The rain interruptions extended to Teck Resources Ltd.’s Quebrada Blanca mine in northern Chile, spokeswoman Claudia Onetto said yesterday. Xstrata’s Tintaya mine in neighboring Peru was also affected, Sartain said.

Supply Shortfalls

There are “consistently shortfalls” in the copper industry, mainly because of declining ore quality in aging mines in countries such as Chile, Sartain said. “What you see this year is an ongoing continuation of that.”

While Anglo American is aware of stockpiling of the metal, “we don’t see a flood of that coming back onto the market,” MacKenzie said at the same conference. There is evidence of acceleration in copper demand in recent weeks, he said.

Global stocks remain at low levels and there is consensus about the metal’s “solid market fundamentals,” Diego Hernandez, chief executive officer of Codelco, said at the event.

Freeport-McMoRan Copper & Gold Inc., the world’s largest publicly traded copper producer, is “very confident” about long-term demand from China, Chief Executive Officer Richard Adkerson said today in an interview.

Copper for three-month delivery erased a drop of as much as 0.7 percent to rise 0.5 percent to $9,374 a ton on the London Metal Exchange at 10:39 a.m. New York time. Copper for May delivery rose 0.4 percent to $427.05 a pound in New York.

World’s Largest

Xstrata will become the world’s largest producer of copper concentrate by 2014 when its Las Bambas mine in Peru starts production, Sartain said.

The company plans to increase production to 1.5 million metric tons of copper by the end of 2014. This year the company probably will produce a little more than last year’s 913,500 tons, Sartain said. Xstrata fell 1.3 percent to 1,491.5 pence in London trading at 11:11 a.m. New York time.

Xstrata’s Agua Rica and El Pachon projects in Argentina could deliver 600,000 metric tons of copper by 2016 through an investment of more than $6 billion, Sartain said.

Copper concentrate is an intermediate product obtained from processing ore that is sold to smelters.

Development of the Antapaccay and Las Bambas projects in Peru are on schedule, Sartain said.

To contact the reporter on this story: Matt Craze in Santiago at mcraze@bloomberg.net

To contact the editor responsible for this story: Dale Crofts in Buenos Aires at dcrofts@bloomberg.net

Source: http://www.bloomberg.com/news/2011-04-05/xstrata-says-china-s-copper-demand-to-recover-reducing-stocks.html

Author: Dorothy Kosich
Posted: Wednesday , 27 Apr 2011

RENO, NV -

With Barrick's bid for Equinox Minerals, Scotiabank economist Patricia Mohr suggested Tuesday LME copper prices "could well re-test previous record highs as 2011 unfolds."

In the Scotiabank Commodity Price Index report for April, Mohr advised China's copper demands will likely strengthen seasonally again in the second quarter of this year as reconstruction in Japan will eventually lift copper demand.

"However, we acknowledge that commodity prices are now at mid-cycle, with further gains likely to be more limited," she cautioned.

In her analysis, Mohr suggested, "Copper could still retest the previous US$4.60 record of February 14."

"Chinese copper fabricators destocked copper and produced 2.1% fewer copper semis in January and February due to credit restrictions and high prices," she said. "However a big seasonal pick-up in consumption in the second quarter will lift prices."

"End-use demand in air conditioners, electronic goods, high-speed railway equipment and autos remains strong," Mohr noted.

Meanwhile, Mohr's research has found spot potash prices continue to advance, rising to US$409 per pound in March. "Prices are expected to increase another US$50 by May, with BPC already concluding sales to Brazil at higher prices, given strong demand in that market."

The Fukushima-Daiichi nuclear power plant crisis in Japan caused spot uranium prices to drop $11 to US$55.50 per pound in late April, according to Scotiabank. "Spot transactions have slowed as buyers and sellers reassess the market outlook."

"While uranium prices will likely remain soft until the Fukushima-Daiichi plant is fully stabilized, prices should start to pick up again by late 2011," Mohr forecast. "The biggest impact of this crisis will likely be the faster adoption of new reactor technology (such as passive self-regulating reactors, not requiring cooling)."

"The four major growth markets for nuclear power-China, India, Russia and South Korea-are expected to go ahead with previously planned nuclear energy expansion (totaling 106.2 GWe [Gigawatt-Electric] or 28% of current world capability of 377.8 GWe)," Mohr noted. "While there could be some delay, an official in China has indicated there may be an announcement in the late summer."

Nevertheless, she warned, "Germany's recently announced decision to phase out nuclear power (now 23% of electricity supplies) will likely prove costly and undermine industrial competitiveness, as the country shifts to much higher-cost, less reliable base-load electricity sources and becomes more dependent upon imported energy (pipeline natural gas from Russia and nuclear from France)."

"We maintain our spot price forecast of US$70-75 by 2013," Mohr advised.

Source: http://www.steelguru.com/metals_news/Chinese_copper_consumption_to_reach_7_million_tonnes_in_2011/201304.html

Xstrata Plc (XTA) said a build-up in copper stocks, responsible for the metal’s worst first quarter in a decade, will end in “the next couple of months” as buyers return to the marketplace.

Chinese demand may recover to grow 6 percent this year, Charlie Sartain, who runs the Zug, Switzerland-based company’s copper business, said in an interview in Santiago yesterday. Demand is also recovering in Europe and the U.S., he said.

Copper prices jumped about 30 percent last year as mining companies struggled to meet rising demand. The metal fell 1.8 percent in the first quarter of this year, the biggest decline for the period since 2001, as Chinese buyers consumed existing stockpiles and the country boosted scrap imports.

“Both of those trends I think will have an endpoint within the next couple of months,” Sartain said. “Then we’ll see demand picking up again.”

Copper demand in the U.S. may grow 6 percent this year while mine supply will lag behind demand again this year as suppliers face disruptions, Sartain said.

The Collahuasi mine in northern Chile was affected by heavier-than-normal rainfall in the first quarter, John MacKenzie, the head of Anglo American Plc (AAL)’s copper business said in an April 1 interview. Anglo and Xstrata each own 44 percent of Collahuasi.

The rain interruptions extended to Teck Resources Ltd.’s Quebrada Blanca mine in northern Chile, spokeswoman Claudia Onetto said yesterday. Xstrata’s Tintaya mine in neighboring Peru was also affected, Sartain said.

Supply Shortfalls

There are “consistently shortfalls” in the copper industry, mainly because of declining ore quality in aging mines in countries such as Chile, Sartain said. “What you see this year is an ongoing continuation of that.”

While Anglo American is aware of stockpiling of the metal, “we don’t see a flood of that coming back onto the market,” MacKenzie said at the same conference. There is evidence of acceleration in copper demand in recent weeks, he said.

Global stocks remain at low levels and there is consensus about the metal’s “solid market fundamentals,” Diego Hernandez, chief executive officer of Codelco, said at the event.

Freeport-McMoRan Copper & Gold Inc., the world’s largest publicly traded copper producer, is “very confident” about long-term demand from China, Chief Executive Officer Richard Adkerson said today in an interview.

Copper for three-month delivery erased a drop of as much as 0.7 percent to rise 0.5 percent to $9,374 a ton on the London Metal Exchange at 10:39 a.m. New York time. Copper for May delivery rose 0.4 percent to $427.05 a pound in New York.

World’s Largest

Xstrata will become the world’s largest producer of copper concentrate by 2014 when its Las Bambas mine in Peru starts production, Sartain said.

The company plans to increase production to 1.5 million metric tons of copper by the end of 2014. This year the company probably will produce a little more than last year’s 913,500 tons, Sartain said. Xstrata fell 1.3 percent to 1,491.5 pence in London trading at 11:11 a.m. New York time.

Xstrata’s Agua Rica and El Pachon projects in Argentina could deliver 600,000 metric tons of copper by 2016 through an investment of more than $6 billion, Sartain said.

Copper concentrate is an intermediate product obtained from processing ore that is sold to smelters.

Development of the Antapaccay and Las Bambas projects in Peru are on schedule, Sartain said.

To contact the reporter on this story: Matt Craze in Santiago at mcraze@bloomberg.net

To contact the editor responsible for this story: Dale Crofts in Buenos Aires at dcrofts@bloomberg.net

Source: http://www.bloomberg.com/news/2011-04-05/xstrata-says-china-s-copper-demand-to-recover-reducing-stocks.html

Three-month-delivery copper on the London Metal Exchange gained as much as 0.4 percent to $9,619 a metric ton before trading at $9,588.50 at 2:55 p.m. Singapore time. The metal, which fell 0.6 percent earlier, is headed for its first quarterly decline since the three months ended June 2010 on speculation that economic growth will slow after Japan’s worst earthquake on record and China’s monetary tightening measures this year.

“We’re going to see trading continue in a fairly wide range of $9,000 and $10,000 as investors are torn between the longer-term outlook and short-term developments,” Zhang Xi, an analyst at Luzheng Futures Co., said from Shandong. “We are still bullish on the outlook for demand this year.”

Copper futures on the Comex in New York gained as much as 0.8 percent to $4.379 a pound, while the metal for June delivery on the Shanghai Futures Exchange rose as much as 1.1 percent to 71,600 yuan ($10,918) a ton.

Japanese companies resumed production, easing concerns about lower output and demand. Zinc producer Dowa Holdings Co. plans to resume its smelter operations next month, while automaker Nissan Motor Co. expects factories to return to normal by the end of June.

Still, efforts to stabilize the Dai-Ichi nuclear plant in Fukushima, damaged by the March 11 earthquake and tsunami, have been hindered by detection of radiation levels that can prove fatal to a person exposed for several hours. The facility may take three decades to decommission and cost operator Tokyo Electric Power Co. more than 1 trillion yen ($12 billion), engineers and analysts said.

In China, the central bank has boosted the reserve- requirement ratio eight times and raised interest rates three times since the start of 2010 to cool the economy and tame inflation. It may raise interest rates again in early April, Citigroup Inc. said.

Aluminum and lead in London were little changed at $2,649 a ton and $2,685 a ton respectively, while zinc was also little changed at $2,377.75 a ton. Nickel lost 0.4 percent to $26,500 a ton while tin gained 0.4 percent to $31,700 a ton.

To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Source: http://www.bloomberg.com/news/2011-03-30/copper-declines-heads-for-quarterly-loss-on-speculation-demand-to-weaken.html

(Reuters) - Demand for gold and copper will remain robust even though metal prices have soared, with both China and a slowly improving U.S. economy clamoring for fresh supplies, industry executives told the Reuters Global Mining and Steel Summit on Wednesday.

U.S. gold prices have hovered near $1,440 per ounce, driven by nervous investors seeking to own hard assets, while copper prices peaked at a record near $4.65 a pound last month.

In the United States, "export business (and) consumer spending are improving, automobiles (are) strong, so this recovery ... is translating into improved demand for copper," Richard Adkerson, chief executive of Freeport-McMoRan Copper & Gold (FCX.N) said.

While the U.S. economy is far from thundering along, it is gathering steam, said Adkerson, the head of the world's largest publicly traded copper miner.

"(It's) gradual, but a definite recovery in the U.S., although the residential and commercial construction business is still very weak," he said.

Even with two Japanese smelters shut following the devastating earthquake there, Freeport sees no difficulty in selling the 22 percent of its copper concentrates that it sells there.

Still, the Japanese market is likely to show strength as the country moves to rebuild from the damage that could top $300 billion.

Goldcorp Inc (G.TO) CEO Chuck Jeanness told the Summit in Toronto that gold prices could eventually challenge the inflation-adjusted highs near $2,300 hit about three decades ago.

Even as investors stockpile gold because of fears of economic instability and currency volatility, demand from consumers in China has been nothing short of astonishing, he said.

"There's no way that I could have surmised two or three years ago that physical gold demand in China would surpass that of India, which is expected to happen this year," Jeannes said.

India is the world's leading gold consumer, although demand is likely to decline 16 percent there this year, Morgan Stanley said in a research note on Tuesday.

GOVERNMENT GRAB

The jump in metals prices has not escaped the attention of governments, which are eager to restore their battered coffers.

But increasing royalties and taxes will only push mining investments to cheaper locales, Mark Cutifani, chief executive of AngloGold Ashanti (ANGJ.J) told the summit in Johannesburg.

Cutifani called Australia's planned new mining tax as a "terrible error" that will have long-term repercussions for investment, even after the government reached a complex deal with the big mining companies to water it down.

"It will hurt Australia. A lot of development (is) occurring in Canada, because it's a much more competitive jurisdiction than Australia. Other parts of Africa are being looked at again as a consequence of the Australian move," he said.

AngloGold's Cutifani and other executives warned South Africa not to follow in Australia's footsteps after a minister hinted last week the country might overhaul its minerals tax regime and take Australia as a template.

(Reporting by Agnieszka Flak and Ed Stoddard in Johannesburg, Eric Onstad in London, Julie Gordan and Euan Rocha in Toronto, Steve James, Matt Daily, Carole Vaporean, Michael Erman, Chris Kelly and Frank Tang in New York, Writing by Matt Daily;editing by Sofina Mirza-Reid)

Source: http://www.reuters.com/article/2011/03/23/us-mining-summit-idUSTRE72M8SP20110323

Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--Copper prices settled at a two-week high Wednesday, as a surge of technical trading was unswayed by sharply weaker U.S. economic data.

The most actively traded contract, for May delivery, settled up 2.7%, or 11.55 cents, at $4.4285 a pound on the Comex division of the New York Mercantile Exchange.

The thinly traded March delivery contract was up 2.7%, or 11.5 cents, at $4.4185 per pound.

Technical trading dominated the market Wednesday, with copper prices marching above the 50-day moving average early in the session. Crossing above this level signals an uptrend for technicians and trading algorithms, while crossing below it signals a downtrend.

"There are traders and computer based programs that execute trades automatically whether it makes sense or not," said Sterling Smith, analyst with Country Hedging.

The sharp move higher came amid "unusually low" trading volumes, Smith said. Just 33,791 copper contracts changed hands on the Comex by 1:56 p.m. in New York, nearly half the 61,850 contracts traded on March 15, when metal prices rallied off recent lows.

Copper prices briefly dipped on a surprise drop in U.S. new home sales, which fell 16.9% to a record low in February. The data, which came out at 10 a.m. saw copper prices slip to $4.3985 before resuming upward momentum.

"I'm always nervous of a market that rallies on low volumes in the face of fundamentally bad news, and the new home sales were as anti-copper as you can get," Smith said.

Copper is widely used in residential construction for electrical wiring and plumbing, and the sharp tumble in new homes sales is typically seen as negative for copper demand.

But technical indicators point to another step up for copper, as prices settled above the technically important 50-day moving average of $4.41 a pound.

"We're seeing a rally in a market that has overall been trending lower. To buck the trend and move higher we need to see some follow through...and get back above the key technical level," to resume upward momentum, said Matt Zeman, head of trading at Kingsview Financial.

A broad rally in metals markets helped boost trader confidence. Gold set a new record price at $1,438.0 per troy ounce while silver hit a fresh 31-year high of $37.198 per troy ounce.

"Overall risk appetite seems relatively high," said Zeman.

Progress at Japan's earthquake-damaged nuclear facility helped boost market sentiment. Workers at the Fukushima Daiichi nuclear complex hope to restore cooling systems to all the reactors in the next few days, after electricity was reconnected Tuesday. Authorities appear to be gaining control of the troubled plant and averting the risk of a nuclear meltdown.

But copper traders are watching for geopolitical flare-ups. Allied air strikes against Libyan leader Col. Moammar Gadhafi's forces continued for the fifth day Wednesday as the Western coalition's intervention in Libya's civil conflict continues.

Libya's crude oil exports have been disrupted by the fighting, and copper traders worry that a prolonged conflict will see higher energy prices pressure economic growth and curb demand for copper.

Copper is widely used in consumer electronics and household electrical products, and prices tend to weaken when economic growth slows.

-By Tatyana Shumsky, Dow Jones Newswires; 212-416-3095; tatyana.shumsky@dowjones.com

Source: http://online.wsj.com/article/BT-CO-20110323-712222.html

Source: http://www.automatedtrader.net/real-time-dow-jones/53184/brazil-copper-demand-to-rise-11-in-2011-imports-to-meet-growth

The metal for three-month delivery rose as much as 2.1 percent to $9,306 a metric ton on the London Metal Exchange, and traded at $9,281 at 3:04 p.m. Shanghai time. The contract tumbled to a three-month low of $8,944.50 yesterday. June- deliver copper on the Shanghai Futures Exchange gained 2.9 percent to close at 70,580 yuan ($10,740) a ton.

“Following the steep losses in the last few days, the price now looks attractive to some buyers,” Li Peiying, an analyst at Essence Futures Co., said by telephone from Beijing. “People have started to shift their attention to the rebuilding that will boost demand in the next few months.”

Copper and lead are likely to benefit due to power line and transformer replacements and the need for generators and batteries in light of power problems, Gayle Berry, an analyst with Barclays Capital, said in a report yesterday. Aluminum, zinc and nickel demand may also rise, according to the report.

Japanese stocks rose for the first time in five days on speculation a selloff yesterday that drove valuations to a 28- month low was excessive. The broader Topix index climbed 6.6 percent, the most since October 2008, to 817.63.

Uncertain Shipments

Chinese imports of refined copper from Japan are expected to remain normal in March and April, although uncertainties remain for May and June, analysts led by Mark Pervan with Australia & New Zealand Banking Group Ltd., said in a report today. “March shipments have nearly been completed, while copper due to leave to China in April has been stored in warehouses in ports in western Japan.”

Japan last year supplied 253,157 tons of refined copper to China, the largest consumer, or 8.7 percent of Chinese imports, according to customs data.

Mitsubishi Materials Corp., Japan’s third-largest copper maker, declared force majeure March 14 on concentrate shipments to its Onahama smelter, after the quake and tsunami halted power supply. The facility has an annual capacity of 258,000 tons, spokesman Toshiaki Yamada said today.

The Conference Board Leading Economic Index for China rose 0.3 percent to 155 in January from the previous month, said the New York-based research organization on its website today, citing preliminary data. The indicator, designed to capture prospects over the coming six months, recorded the first decline since 2008 in December.

Aluminum in London rose 0.7 percent to $2,511 a ton, zinc gained 2.1 percent to $2,329 a ton, and lead added 1.1 percent to $2,538 a ton. Nickel climbed 2.5 percent to $25,310 a ton, and tin advanced 1.1 percent to $28,900 a ton.

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Source: http://www.bloomberg.com/news/2011-03-16/copper-advances-for-first-time-in-six-days-on-demand-for-japan-rebuilding.html

Copper advanced in London, reversing an early decline, as oil prices dropped for a second day, easing concern that high fuel costs may curb the global economic recovery and reduce demand growth.

Copper for three-month delivery gained 0.7 percent to $9,596.75 a metric ton at 6:02 p.m. in Singapore. New York- traded crude fell as much as 0.8 percent today after American Petroleum Institute data showed an inventory increase.

“Risk appetite improved on weaker oil and rallying equities,” Mark Pervan, Melbourne-based head of commodity research at Australia and New Zealand Banking Group Ltd., wrote today in a daily report.

Copper decreased to the lowest level in almost two weeks yesterday. Prices have fallen about 6 percent from a record $10,190 reached Feb. 15 on speculation the oil price rally may slow economic growth and as metal stockpiles expanded.

The Lisbon-based International Copper Study Group projected a 2011 shortage of about 400,000 tons in October. Prices rallied to a record on speculation of such a deficit. Stockpiles tracked by exchanges in London, New York and Shanghai rose for a fifth straight day yesterday to 660,826 tons, the highest level since July, according to Bloomberg data.

“The supply-and-demand picture now looks weaker,” David Thurtell, head of base metals research at Citigroup Inc. in Singapore, said today by phone.

‘Well Supplied’

Copper scrap and concentrate markets are “well supplied,” Deutsche Bank AG’s head of commodities research Michael Lewis wrote in an e-mailed report today. Metal stockpiles in so-called bonded warehouses, which don’t publish data, are “high at around 500,000 to 600,000 tons,” he said in the report.

“The window of opportunity for metals to perform is quickly closing,” Lewis said. “This would generally be a strong quarter for industrial metals from a seasonal perspective and with global growth appearing strong and synchronous.”

On the Shanghai Futures Exchange, the May futures contract closed up 0.8 percent at 71,600 yuan ($10,897) a ton. Futures for May settlement added 0.2 percent to $4.346 a pound on Comex.

Aluminum in London increased 0.5 percent to $2,610 a ton, zinc dropped 0.2 percent to $2,390 a ton, and lead was unchanged at $2,590 a ton. Tin gained 0.3 percent to $30,675 a ton and nickel added 0.9 percent to $27,075 a ton.

-- Editors: Ravil Shirodkar, Matthew Oakley

To contact the reporter on this story: Chanyaporn Chanjaroen in Singapore at cchanjaroen@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Source: http://www.bloomberg.com/news/2011-03-09/copper-increases-as-crude-oil-price-drop-eases-slowdown-concern.html

Smelters in China are operating at more than 90 percent capacity and most are using more scrap material than usual because of high refined prices, Chairman Wei Jianghong told reporters in Beijing while attending the National People’s Congress.

Copper touched a record $10,190 a ton in London last month after surging 30 percent in 2010, as the global economy recovered from the worst recession since World War II. China, the world’s biggest consumer of copper, targets economic growth of 8 percent this year. Demand is rising as the nation upgrades networks, and builds more homes, autos and appliances.

“Overall, copper demand this year will be good - certainly it will be better than 2008, 2009 and 2010,” Wei said. He didn’t give a forecast. “Demand for rods and tubes are good, driven by higher sales of home appliances and vehicles.”

Sales of Chinese made vehicles will grow between 10 percent and 15 percent this year from 2010, the China Association of Automobile Manufacturers said in January. Copper demand in China may gain 7 percent in 2011 on economic growth, Jiangxi Copper Co. Chairman Li Yihuang said on March 5.

High Prices

“High copper prices have prompted miners globally to ramp up production. They are operating at full capacity, so copper material supplies are more available,” Wei said. “Scrap material supply also increased quickly,” and imports may continue to grow, he said.

Copper processing fees that miners pay smelters to make refined metal should rise in the second half and next year to reflect rising copper prices and more availability of copper materials, Wei said. Tongling’s purchase of copper concentrates accounts for 30 percent of China’s total imports a year, he said.

Still, Tongling is “concerned” that consistently high copper prices may prompt users to switch to aluminum substitutes, Wei said.

--Xiao Yu. Editors: Alan Soughley, Richard Dobson

To contact the reporter on this story: Yu Xiao in Beijing at yxiao@bloomberg.net

To contact the editor responsible for this story: Andrew Hobbs at ahobbs4@bloomberg.net

Source: http://www.bloomberg.com/news/2011-03-08/china-copper-demand-may-be-highest-since-2008-tongling-says-1-.html

(Adds details of increased output in second paragraph. For full NPC coverage see EXT3 <GO>))

March 5 (Bloomberg) -- Copper demand in China may grow by 7 percent this year on strong economic growth, said Jiangxi Copper Co., as the country’s largest producer boosts output.

“China’s economic growth and investment will keep demand at a healthy level,” Li Yihuang, chairman of Jiangxi, said in an interview in Beijing today without elaborating. The company will lift production capacity to 1 million metric tons, up from 900,000 tons last year, he said. China is the largest buyer of the metal.

Copper touched a record $10,190 a ton last month after surging 30 percent in 2010 as the global economy recovered from the worst recession since World War II. Demand is proving to be resilient to the high prices and there hasn’t been any slowdown from China, Chile’s Mining and Energy Minister Laurence Golborne has said.

“As China continues to improve infrastructure and its power grid, it will support the demand for copper,” said Helen Lau, an analyst at UOB-Kay Hian Ltd. “The forecast is actually realistic and in line with our expectations.”

A decline in imports of refined material last year may result in higher shipments in 2011, according to Peter Hickson, UBS AG’s global basic materials and commodities strategist, Jan. 18. Imports of copper, including the refined metal, alloy and products, were little changed at 4.29 million tons in 2010, according to customs data.

Strong Growth

Demand for copper is surging as the nation plans to build more homes, autos and appliances and upgrade power-grid networks. China’s government will target 8 percent economic growth this year and “decisively” curb increases in prices that could affect social stability, Premier Wen Jiabao said in his annual state-of-the-nation report today.

Copper for three-month delivery closed 0.2 percent lower yesterday at $9,895 a ton on the London Metal Exchange.

“Copper sales on the spot market right now are rather weak, but for the year, copper will be in short supply,” said Jiangxi’s Li, who spoke ahead of the meeting of the National People’s Congress.

China’s economy expanded 10.3 percent in 2010, the fastest pace in three years, statistics bureau data show, compared with growth of 9.2 percent in 2009. After Japan reports gross domestic product for the fourth quarter on Feb. 14, comparative data may show China was the second-biggest economy last year.

In nominal terms, gross domestic product is more than 100 times bigger than in 1978, when Communist Party leader Deng Xiaoping began rolling out free-market policies. While China outstripped Germany in 2007 and the U.K. and France in 2005, the economy remains less than half as big as that of the U.S.

“China is hugely short” and needs copper, Gayle Berry, a London-based analyst at Barclays Capital in London, said Feb. 22.

--Xiao Yu. With assistance from Regina Tan in Beijing. Editors: Richard Dobson, Paul Panckhurst.

To contact the reporter on this story: Yu Xiao in Beijing at yxiao@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Source: http://www.businessweek.com/news/2011-03-05/copper-demand-in-china-may-grow-7-this-year-jiangxi-says.html

Source: http://online.wsj.com/article/BT-CO-20110304-707080.html

Source: http://www.commodityonline.com/news/Copper-to-gain-in-Q2-on-expected-China-demand-36828-3-1.html

Author: Geoff Candy

Demand, primarily from Asia is expected to help copper prices establish themselves above $10,000 before moving toward $12,000 over the next 18 to 24 months.

But, over the shorter term the risks are to the downside and trade is likely to be choppy.

Speaking on Mineweb.com's Metals Weekly podcast, Leon Westgate, Commodities Strategist at Standard Bank, told Mineweb, " there's a stark disconnect that's opened up between where futures prices are and where the underlying physical picture is.

"For example, in Asia physical premiums are on the floor - you're seeing large inflows of metal into LME warehouses. The Shanghai futures exchange inventory is also significantly higher and the Chinese don't appear to be particularly active or in a rush to come back to the market.

He adds, some of the recent price rises have been predicated on the idea that Chinese buyers could come back after their New Years holiday's and continue where they left off but, this hasn't been the case.

"China is fairly well stocked with copper at the moment and it's a bit of a waiting game going on and really it's a question of ‘do prices hang on here and wait for the fundamentals to catch up, or do the fundamentals, the weaker physical picture - does that drag on futures prices?"

Westgate believes that, as a result of this scenario, prices are likely to average around $9,500 per tonne during 2011 before rallying strongly next year. He adds that over the short term the timing of China's re-entry into the market is key as they still have some room to go with regard to destocking.

"It's really a battle between the financial community and the physical market. Copper is no longer a commodity that's used and consumed - it's a hybrid. Its part financial instrument, part physical commodity and at the moment it's shifting its weight more towards the financial side of its behaviour."

Asked about the possibility of the investment side of the market losing interest in the commodities as the rest of the financial world recovers and investors look once more to other asset classes, Westgate says that it is a problem for the longer term.

"You obviously have concerns about inflation, helping support the commodity. Longer term, once companies are doing better, you've got equity prices doing better, companies are paying dividends, property markets back up off the floor - the key will be interest rates. If real interest rates start to go up, then you may see interest shift out of commodities, not just copper but the likes of gold as well as investors do look for high yielding assets. That's more of an issue, not necessarily this year but certainly end of 2012 as we head into the middle of the next decade - you may see sector rotation and that may have a significant effect on commodity prices or certainly how commodities are viewed."

Source: MineWeb

Link to Article http://www.mineweb.com/mineweb/view/mineweb/en/page36?oid=121189&sn=Detail&pid=102055

The metal for three-month delivery on the London Metal Exchange rose for the first time in four days, advancing as much as 1.2 percent to $9,921 a metric ton. It traded at $9,875 by 12:22 p.m. Shanghai time. Copper for May delivery on the Shanghai Futures Exchange climbed 0.2 percent to 74,800 yuan ($11,370) a ton by the midday break.

“It’s still in a correction mode, but positive economic data can offer some support from time to time,” Pang Ying, a trader at Shenzhen Rongtop Trading Co., said by phone.

The Federal Reserve Bank of Philadelphia’s general economic index, a gauge of manufacturing, rose to 35.9 in February, the highest level since January 2004, and beat the median forecast of 21 in a Bloomberg News survey of economists. Separately, the Conference Board’s index of U.S. leading indicators rose in January for the seventh straight month, signaling the expansion will extend into this year.

“The bearish range breakout along with the bearish momentum roll is viewed as a healthy correction within the longer-term bull trend,” said Barclays Capital in a note yesterday. Buying interest is likely at about $9,600, it said.

The Conference Board Leading Index for China declined 0.5 percent in December to 154.3, the New York-based research organization said on its website today. The measure fell for the first time since 2008.

Mixed Data

It’s “too early to tell” if the world’s second-biggest economy will have an economic slowdown, Jing Sima, an economist for the Conference Board, said in a press release. “While the construction and consumer sectors are weakening, growth in the industrial sector remains strong.”

China’s January home prices remained steady after the government rolled out a series of curbing measures, data released by the National Bureau of Statistics showed today.

“The new data clearly shows home prices are still rising and the government curbs only suppressed transaction volumes,” said Jinny Yan, a Shanghai-based economist at Standard Chartered Plc. “If the liquidity is not tightened, it would be impossible for home prices to fall.”

“We do view credit rationing and a substantial rise in the reserve requirement ratio of banks as a greater immediate negative impact to commodity prices,” Walter de Wet, an analyst at Standard Bank Plc said in a research note yesterday.

Aluminum in London rose 0.6 percent to $2,528 a ton, zinc gained 1.3 percent to $2,544 a ton, and lead climbed 1.4 percent to $2,620 a ton. Nickel added 0.4 percent to $28,600 a ton, and tin advanced 0.7 percent to $31,880 a ton.

- Helen Sun. Editors: Richard Dobson, Ravil Shirodkar

To contact the Bloomberg News staff on this story: Helen Sun in Shanghai at hsun30@bloomberg.net

To contact the editor responsible for this story: James Poole at jpool4@bloomberg.net

Source: http://www.bloomberg.com/news/2011-02-18/copper-in-london-gains-for-first-day-in-four-paring-second-weekly-decline.html

Walter de Wet, Standard Bank's Head of Commodity Research says: “After last year's deficit, we project the deficit to grow to 385,000 metric tonnes for 2011 and 562,000 for 2012, so clearly demand is growing faster than supply and will remain strong until 2013. This may result in global reported stocks drawing down to less than one week of consumption by end-2012. Even at that stage we don't see demand falling, but rather a case of supply starting to catch up with demand as high prices stimulate new projects.”

China and other emerging markets especially in Asia are driving the increasing copper demand where pricing is projected to average US$9,200 per metric tonne in 2011 and US$10,000 per metric tonne in 2012. Asia currently accounts for 55% of total global demand.

Of all the base metals, copper has the most bullish outlook with tin a close second. Standard Bank has largely been accurate in correctly forecasting base metals. For instance, its forecast for copper of $7,375/ton average price throughout 2010 was just 2,2% short of the eventual actual figure of $7,543.

“If we look at the break-even copper price for the most marginal of mines, they're all making good profits at the current level,” says De Wet.

“Fundamentals and strong investor interest are likely to keep prices on an upward path overall, though we expect there to be steep corrections and pauses for consolidation along the way. Volatility is likely to remain high.”

This will present interesting buying opportunities, he says.

The rising copper price is expected to parallel the growing commodity deficit, likely to reach a peak in 2011 during the second quarter with China in particular re-stocking, but with the most severely tight market occurring during 2012.

Supply remains constrained. New copper projects are at various stages of development, but considering they take 3-4 years to come on stream, they will not alleviate the deficit or affect the copper price during the next two years. These projects are in the major copper producing countries like Chile, Zambia, the Democratic Republic of Congo, Peru and China.

On the demand side, there is no let-up in the growing demand. “We're continuing to see good growth in copper consumption from Asia, particularly China, and don't expect to see any slowdown in this throughout 2011, and thereafter only a slight slowdown in 2012,” explains De Wet. In addition, current low demand from the US and Europe is expected to begin picking up later this year.

“These twin themes of strong infrastructure development in emerging markets, and a resumption in manufacturing growth in developed markets are strongly supportive of copper consumption and a rising copper price,” he adds.

Although austerity rather than stimulus will be the main theme in Europe this year, modest growth will nonetheless be driven by Germany. In addition, the US economy is carrying good momentum into 2011.

The big swing factor will be China, which is believed to be fairly destocked of copper. “The government's infrastructure spend could be front-loaded within its current five-year plan, which means that we can still expect to see restocking in the first half of 2011,” explains De Wet. - I-Net Bridge

Source: http://www.iol.co.za/business/markets/commodities/recovery-underpins-demand-for-copper-1.1023815

LONDON (Reuters) - World stocks rose on Monday, hovering near a 29-month high on further signs of global economic recovery, and copper rallied to a record high while U.S. 10-year Treasury yields hit their highest since May.

Oil prices were also higher, while the euro fell to a two-week low against the dollar after a bigger than expected fall in German industrial orders.

World equities as measured by the MSCI All-Country World Index advanced 0.2 percent after gaining 2.2 percent last week. The index is up 3.4 percent so far this year, while MSCI emerging markets index is down 2 percent.

"At the moment, clients are feeling that any dips can be bought into and the trend is an upwards one, and I can't see that being thrown off course in the short term," said Giles Watts, head of equities at City Index in London.

Concerns over higher inflation in booming emerging markets, further indications of economic recovery gathering pace in the United States, modest valuations and tentative signs of stability in the euro zone sovereign debt crisis have fueled the outperformance of shares in developed markets.

Data from fund tracker EPFR Global showed investors pulled out $7 billion from emerging markets equity funds in the week of Feb 4, their biggest outflow in three years.

The U.S. S&P 500 and Dow Jones industrial average hit new 2-1/2-year highs on Friday as a fall in U.S. unemployment raised optimism of a labor market recovery.

U.S. stock index futures put on 0.3 percent, indicating a firm open on Wall Street. The pan-European FTSEurofirst 300 rose 0.9 percent on Monday, while Germany's DAX added 0.9 percent, shrugging off the news that German industrial orders fell by 3.4 percent on the month in December. Japan's Nikkei average put on 0.5 percent, hitting a nine-month high.

In terms of valuations, the S&P 500 carries a 12-month forward price-to-earnings ratio of 13.3 times, compared with a 10-year average of 15.5 though more expensive than the emerging markets index's 11.3 times, Thomson Reuters Datastream shows.

TREASURY YIELDS UP

As optimism over the U.S. economic recovery grew, investors were also shifting away from government bonds.

Yields on benchmark 10-year Treasuries rose 3 basis points to 3.6701 percent, their highest level since early May and up about 28 basis points since the start of the month.

"Investors are now reflecting that an ever-improving outlook for the U.S. is a new factor in the equation, which is weighing quite heavily on U.S. Treasuries," said Kornelius Purps, strategist at Unicredit in Munich.

"We have not only the (non-farm) labor report -- which was a mixed bag but seen as a positive -- we have the ISM, which were extremely positive and indicate the U.S. economy is recovering at quite a healthy clip."

Spreads on 10-year Portugese government bonds over benchmark German Bunds rose 5 bps to 386 bps, though still down about 8 bps since the beginning of the month, after Portugal, one of the weakest euro zone economies, planned a five-year syndicated bond.

The euro eased 0.3 percent to $1.3552, while the dollar was up 0.2 percent against a basket of major currencies.

Copper put on 1 percent to $10,152.75 a tonne after hitting a record high of $10,153.50, while benchmark U.S. oil futures

rose 0.3 percent to trade above $89 a barrel.

Source: http://finance.yahoo.com/news/Copper-hits-record-stocks-rb-28340482.html?x=0&sec=topStories&pos=main&asset=&ccode=