Maravi

Copper prices rise to $6,475 per tonne

Copper prices rise to $6,475 per tonne
Written by Chiwoyu Sinyangwe
Monday, August 31, 2009 3:44:18 PM

COPPER prices on the international market lastweek rose to an average US $6,475 per tonne on speculation that a revival of economic growth will spur demand for metals.
And the kwacha’s performance against major convertible currencies is expected to strengthen with the local currency expected to consolidate its position in the band of K4,740 to K4, 840 against US dollar.

According to latest market data, copper futures for December delivery rose by 2.7 per cent to US $2.9505 a pound on the New York Mercantile Exchange.

“The trend remains upward. Investors are in for the long haul and they see general, positive momentum,” said John Meyer, the head of research at Fairfax IS in London.

The price of the red metal had more than doubled this year as the global economy recovered and Chinese demand surged.

Imports of refined copper by China – the world’s largest metal consumer – more than doubled in the first half, buoyed by the government’s US $585 billion spending plan to stimulate the economy.

Barclays Capital in a report issued last Friday stated that a recovery in consumption in the 30 member countries of the Organisation for Economic Cooperation and Development was imminent and would create significant upside potential for prices in the second half.

On the London Metal Exchange, copper for delivery in three months increased US $205, (3.3 per cent) to US $6,475 per tonne (US $2.94 a pound).

And according to the Standard Chartered Bank daily market update, the kwacha last week remained unchanged in the band of K4,790 and K4,710 against the US dollar.

Standard Chartered Bank stated that there was minimal action on all counters.

“The market appears to be fairly balanced and most likely to consolidate around current levels with a bias towards a stronger local unit. Focus range would be around K4,740 to K4,840 averaging,” stated Standard Chartered Bank.

Labels: COPPER

posted by MrK @ 2:46 PM