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Copper demand increases

Copper demand increases
By Fridah Zinyama
Mon 26 Oct. 2009, 04:00 CAT

COPPER climbed to a 13-month high of US $6,649 on Friday as upbeat data in the United States and Europe renewed prospects for economic recovery and metals demand.

Copper earlier touched US $6,714, a level last seen on September 29, 2008 and is on course for its biggest weekly gain since July, according to experts.
Arne Lohmann, an analyst at Danske bank said there had been promising numbers from Europe and the US on demand for copper.

“Recovery is spreading from Asia to Europe and also to the US And then of course you have strikes in Chile ... and strong data out of China in the last couple of days,” he said.

US data out earlier showed existing home sales hit a two-year high in September.

The US housing market is key to driving demand for copper, a metal used primarily in power and construction.
In Europe, data showed industrial new orders in the Eurozone rose more than expected on the month in August, underlining expectations for an economic recovery.

The data added to numbers from China on Thursday last week which showed economic growth quickened to 8.9 per cent in the third quarter. China is the world's leading copper consumer.

And Zinc touched US $2,297, its highest point since May 2008, having gained nearly 17 per cent this month, more than any other London Metal Exchange (LME) traded metal.

Zinc premiums are set to rise as mills that use the metal to galvanise steel restart production due to rising demand, industry sources said.
Benchmark Zinc on the London Metal Exchange ended at US $2,273 a tonne from US $2,250 at the close of trading on Thursday while copper ended at US $6,649 from US $6,585.

Labels: COPPER

posted by MrK @ 5:49 AM