cu commentary
Copper Rises on Increased Demand in Japan, Dwindling Stockpiles
March 18 (Bloomberg) -- Copper futures in New York rose to a two-week high on speculation of increased demand in Japan, the world's third-biggest consumer, at a time of dwindling global supplies.
The dollar's decline to a one-month low against the yen will make copper, which is priced in dollars, cheaper for buyers in Japan. Copper prices have climbed 31 percent this year as accelerating economies in China and the U.S. boosted demand for homes and appliances, forcing manufacturers to tap inventories because mine production and recycled scrap couldn't keep pace.
``There's not enough copper in the world at these prices to satisfy everybody's demands,'' said Tony Nappi, a trader at Triland USA Inc. in New York. ``We had Far East buying'' today that was probably prompted by the decline in the dollar against the yen, Nappi said……
Inventories at warehouses approved by the London Metal Exchange, the world's largest metals market, have plunged 47 percent this year, falling 6,000 tons today to a six-year low of 229,050 tons.
Flats - At this rate stockpiles will be depleted in 38 days!
