copper up on china demand

every day a different story. up,dow, china wants it, china doesnt want it, a glut of copper, a deficit of copper
blah blah

of course china still needs it, blind freddy can see that they have been using stockpiles to keep prices down just as all of us would do
ozl will do very well, i think ozl has bottomed
now for the report

Copper Climbs in London on Signs of Increased Demand in China

By Claudia Carpenter

Oct. 28 (Bloomberg) -- Copper rose for a second day in London on speculation that demand for the metal will strengthen in China, the world's largest user. Nickel and lead also gained.

China's copper imports rose 29 percent in September, the country's customs office said yesterday. Merrill Lynch & Co. forecasts China's copper demand will increase 9 percent next year from 8 percent growth this year and 13 percent last year.

``We're not calling for a collapse in China's copper demand,'' said Francisco Blanch, head of global commodities research at Merrill Lynch in London. ``Emerging market growth is a secular theme that will dominate the next 10 years.''

All industrial metals except for zinc and aluminum increased on the London Metal Exchange. Copper for delivery in three months climbed $20, or 0.5 percent, to $4,040 a metric ton as of 9:31 a.m. in London. Prices jumped 6.6 percent yesterday.

The metal used in construction and power plants has dropped 39 percent this year as a housing slump and reducing lending in the U.S. spilled over into Europe and Asia.

Prices have also been pressured by increased supplies. Stockpiles of copper in warehouses monitored by the LME increased 2,175 tons, or 1 percent, to 215,550 tons, bringing this month's increase to 8.5 percent, according to LME data released today.

Supply growth may start to slow as prices fall below the marginal cost of production of between $4,000 and $4,500 a ton, Blanch said.

Aluminum was unchanged at $2,038 a ton and zinc dropped $28 to $1,157. Lead increased $65 to $1,360, nickel added $600 to $11,700 a ton and tin increased $1,450 to $15,000 a ton.