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Copper prices will be vulnerable, warns Melu

Copper prices will be vulnerable, warns Melu
Written by Kabanda Chulu
Wednesday, September 02, 2009 3:59:36 PM

STANDARD Chartered Bank Zambia managing director Mizinga Melu has said current copper prices will become vulnerable in the short term due to resumption of production in Chile and the anticipated pullback in China’s imports.

And Standard Chartered has rolled out internet banking (ibanking) in Zambia to allow retail customers access banking services 24 hours a day throughout the week, anywhere in the world at any time through usage of personal computers.

During the launch of the K747.8 million state of art dealing room in Lusaka yesterday, Melu said China’s high demand for copper had in recent months supported the rise in copper prices on the world market.

She said the underlying fundamentals for copper looked strong from a medium term perspective but prices would be vulnerable due to a significant pullback in the short term.

“Prices have rebounded strongly in recent months on the back of rising confidence about the global economic outlook, production problems in Chile and very strong imports by China,” Melu said.

“These last two factors should be less supportive in the weeks ahead, firstly, full production will resume this week at the Escondida mines in Chile, which is the world’s largest copper mine, secondly, we anticipate a pullback in China’s imports, which increased recently due to strong demand and stockpiling activity which we suspect will be discouraged by high prices.”

And Melu said the infrastructure in the dealing room would allow for the bank to provide its customers with real time macro global and local indicators, including interest and exchange rates and commodity prices.

Bank of Zambia director for Financial Markets, Peter Banda, said it was imperative for players in the market to keep abreast with changing market dynamics and global trends.

“As part of the global financial system, we do not want to lag behind in developing financial markets since attracting the much needed foreign investment, largely require reasonably developed and secure financial system,” said Banda.

And Stanchart head of Consumer Banking, Ralph Watungwa, said the new product would enable the bank to enhance its service to retail customers.

“We differentiate our brand in Africa through our ability to leverage on our international expertise and product capabilities to introduce new, innovative services into our African markets. The roll-out of our internet banking product in Zambia is yet another example of this competitive advantage, and further evidence that we are continuing to invest heavily in our African franchises,” said Watungwa.

Labels: COPPER, iBanking, MIZINGA MELU, RALPH WATUNGWA, STANCHART

posted by MrK @ 3:01 PM