Sydney, Oct 20, 2008 (ABN Newswire)
Copper rebounded from the lowest price since January 2006, on hopes that the five months of falls may encourage buyers back into the market.
Copper supplies are a bit suspect: there's talk of industrial activity in Peru and grades keep falling as Escondida, the mine controlled by BHP Billiton and Rio Tinto.
There's talk of a strike at a mine in Peru owned by Freeport.
In New York, Comex copper futures for December delivery ended up 9.4 US cents or 4.5% on Friday at $US2.1795 a pound. That was after it hit the lowest level since early January, 2006 on Thursday of $US2.0405 a pound.
Union members have gone on strike twice this year at Freeport's Cerro Verde, the third-largest copper mine in Peru. Last's rise ended a four week fall that slashed prices by 33%.
JPMorgan Securities Ltd. this week forecast 2009 copper prices will be 30% lower than an August estimate because of slowing global economies.
The firm reckons the metal will average $4,888 a tonne next year, compared with the earlier estimate of $US6,950.
RIO & BHP copper production is down I think EQN at these levels could be a buy..
I would like to know what others members think.
Paul
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