More about Copper
Bloomberg.com: Latin America
Copper headed for a sixth consecutive weekly gain in London, the longest period of rising prices since October, driven by supply disruption and speculation demand growth may accelerate. Nickel rose to the highest since at least 1987.
Production stoppages at Grupo Mexico SA, the world’s seventh largest copper producer, continue at its zinc and copper operations. The company said this week it may not be able to deliver the metals to customers in May. Industrial production in China, the world’s largest copper consumer, expanded 17.8 percent last month after gaining 20.1 percent in February.
And this, from Reuters, news that some additional capacity might be coming on-stream.
China’s Xiangguang Copper Co. Ltd. aims to start production at its new copper plant in early July but has no time table to start work on its planned expansion, company officials said.
And finally, some speculation as to when Copper might fall again – hey, I made a joke – speculation seems to be becoming a factor in the Copper marketplace.
The blistering rally in copper prices may start to cool later this year as new production finally comes on stream, but most analysts are not expecting a big correction anytime soon.
As miners from Chile to China ramp output to grab a piece of the commodities boom, supplies of copper could begin matching demand later this year and next.
Because of high demand for the industrial metal, thanks to the relatively robust world economy, copper has appeared resistant to any downside risk.
The world’s big investment funds, who have no intention of ever taking delivery of the metal, have been piling in to grab big returns for their portfolios, and driving up the prices in the process.
Indeed on Thursday, precious metals suffered a correction with gold sliding 4 percent and silver losing 14 percent. But while copper wobbled, it ended the day only a fraction lower and by Friday was up $54 at the bid price of $6,350 a tonne.
But most market players don’t believe copper can defy gravity forever.