Hi folks,As I write it's 12:20 pm in the U.S, on 31 December...

Hi folks,

As I write it's 12:20 pm in the U.S, on 31 December 2010 (suckers - still in last year!).

The copper price has hit a new high just a few moments ago. It's trading up 8 cents to USD 4.43 per pound. This is up 1.8% on the day, and is an all time high. It looks to complete 2010 on its high.


I came across an interesting article earlier:

Copper Advances to Record on Speculation Supply Shortage Poised to Worsen (Source
By Claudia Carpenter and Yi Tian - Dec 31, 2010

Copper futures rose to a record for the fourth time this week as speculation heightened that a supply deficit will widen as China, the world's biggest consumer, leads a rebound in demand for industrial metals.

The price reached an all-time high of $4.432 a pound as the global economy recovered from its deepest recession since World War II. Supplies of copper, used in wiring and pipes, will lag behind demand by 825,000 metric tons next year, almost double this years deficit of 449,000 tons, Barclays Capital says.

The metal "continued to climb as the economy got better and better," said James Paulsen, the chief investment strategist at Minneapolis-based Wells Capital Management, which oversees about $350 billion. "That is very fundamental."

On the Comex in New York, copper futures for March delivery gained 6.1 cents, or 1.4 percent, to $4.4235 at 10:23 a.m. In 2010, the price has climbed more than 30 percent, posting an annual gain for the eighth time in nine years.

"Copper has been universally recommended as an investment of choice for 2011," Charles Bradford, a partner at Affiliated Research Group LLC in New York, said in an e-mail. "We expect good numbers out of China."

The price headed for a fifth straight weekly gain. Before today, the metal was up 14 percent in December and 19 percent in the fourth quarter.

Refinery Accident

Supply disruptions in Chile, the world's largest producer, are helping to support prices, along with increased investor demand. An accident at the Chuquicamata refinery curbed output, an official at Chilean government-owned Codelco, said yesterday.

Owners of the Collahuasi mine in Chile indicated on Dec. 20 indicated they may not be able to supply all customers after an accident closed down a port on Dec. 18.

On the London Metal Exchange, copper for delivery in three months rose $152.25, or 1.6 percent, to $9,647.25 a ton ($4.38 a pound). Earlier, the price reached a record $9,675.

Aluminum, lead, nickel, tin and zinc also advanced in London.

The LME will be closed on Jan. 3 for the New Year's holiday.