Copper Advances for Second Day as Demand Outlook Turns Positive By Glenys Sim - May 25, 2011 5:16 PM GMT+1000
Copper in London climbed for a second day as banks from Goldman Sachs Group Inc. to JPMorgan Chase & Co. backed the metal?s prospects amid signs of improving demand.
Three-month delivery copper on the London Metal Exchange rose as much as 1.1 percent to $8,958 a metric ton and traded at $8,949.75 at 3:12 p.m. Singapore time. Stockpiles of the metal in Shanghai Futures Exchange warehouses declined to the lowest in more than seven months last week, a sign that demand may be picking up in the world?s biggest consumer.
?As long as this is a growing market, there will not be enough scrap available, there will not be enough concentrates,? Christian Schirmeister, executive director at JPMorgan?s global commodities group, said at a conference in Singapore.
Copper for August delivery on the Shanghai Futures Exchange gained for a second day, closing 0.9 percent higher at 66,960 yuan ($10,309) a ton. July-delivery copper on the Comex climbed as much as 1.1 percent to $4.056 per pound.
?Don?t expect copper prices to fall down to $5,000 or something,? Schirmeister said yesterday. ?Demand is stronger than production, whether it?s mined or secondary.?
CDU Price at posting:
$3.15 Sentiment: LT Buy Disclosure: Held
