Metals News
Copper Surges to Record in London, 31-Month High in N.Y. on Chinese Demand
industry news
Dec 14,2010

Dec. 13 (Bloomberg) -- Edward Yardeni, chief investment strategist at Yardeni Research Inc., talks about the outlook for the global economy and copper prices. Yardeni talks with Tom Keene on Bloomberg Television's "Surveillance Midday."

Copper prices climbed to a record in London and closed at an all-time high in New York after China refrained from raising borrowing costs over the weekend, bolstering speculation that metal demand will continue to rise.

Last week, China increased reserve-requirement ratios for banks by half a percentage point amid accelerating inflation. The country, the world’s largest metal user, said on Dec. 10 that imports of copper and copper products gained for the first time in three months.

"The fact that China didn’t raise rates provided optimism,” said Phil Streible, a senior strategist at Lind- Waldock, a broker in Chicago. "We’re seeing a continuation of investor buying.”

Copper for delivery in three months gained $235, or 2.6 percent, to close at $9,225 ($4.18 a pound) at 6:11 p.m. on the London Metal Exchange. Earlier, the price reached $9,248, the highest ever.

The rally will continue next year, and copper at "$10,000 is definitely in sight,” said Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt.

In New York, copper futures for March delivery rose 9.5 cents, or 2.3 percent, to $4.207 a pound on the Comex, the highest closing price ever. After the settlement, the metal reached $4.222, the highest intraday price since May 5, 2008, when the commodity climbed an all-time high of $4.2605.

Copper may reach $4.30 by the end of the year and advance to $4.50 in the first quarter of 2011, Streible said.

In New York, copper has surged 46 percent since July 1 as global inventories dwindled. The introduction of exchange-traded products backed by the metal also boosted prices.

Lead, nickel, tin, zinc and aluminum also gained in London.




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