risen 0.42% in london - metals rally resumes

Copper Rises in London as Global Demand Growth May Accelerate
April 20 (Bloomberg) --

Copper rose in London, resuming a rally on expectations that global economic growth will fuel demand for the metal used in cars, homes and appliances.

The International Monetary Fund yesterday raised its forecasts for world economic growth this year, citing gains in Japan, India and China. Copper prices have climbed 94 percent in the past year as demand exceeds supply from mines and refiners.

The IMF forecast ``leads to increased expectations for consumption being driven by an ongoing level of strong economic activity,'' said John Meyer, an analyst at Numis Securities Ltd. in London.

Copper for delivery in three months rose $41, or 0.6 percent, to $6,431 a metric ton at 10:03 a.m. on the London Metal Exchange. Prices fell yesterday for the first day in six after touching a record $6,545 a ton.

Copper stockpiles in warehouses approved by the LME fell 625 metric tons to 118,425 tons, the exchange said today.

High commodity prices reflect a ``strong global economy, strong global growth,'' Federal Reserve Bank of San Francisco President Janet Yellen said yesterday. Global economic growth will be 4.9 percent this year, the Washington-based IMF said yesterday, up from a September forecast of 4.3 percent.

Much of the demand growth for copper has been fueled by China, whose economy grew 9.9 percent last year. The IMF raised its forecast for China's growth this year to 9.5 percent from the 8.2 percent it projected in September.

Unexpected ``demand shocks'' may be the next spur for copper prices, Credit Suisse Group said in a report today.

Copper has been supported by supply disruptions, including at mines owned by Freeport-McMoRan Copper & Gold Inc. and Grupo Mexico SA. Demand exceeded supply from mines and sc-rap yards by 40,000 tons last year, the third straight supply deficit, the Lisbon-based International Copper Study Group said last week.

``We believe consumers are now buying heavily to restock to fill their strong order books,'' London-based Credit Suisse analysts Jeremy Gray, Ephrem Ravi and Hannah Kirby said in their report today.