The disruptions came amid shrinking stockpiles, which users are relying on to fill an expected shortfall in production. Stocks tracked by the London Metal Exchange fell 7.8 percent last week to 25,525 tons, a 31-year low. The Shanghai Futures Exchange said July 22 that the inventory it monitors dropped 7 percent in the preceding week to 36,925 tons.
As stockpiles fall ``it will be very hard to knock this market down,'' said William O'Neill, a partner at Logic Advisors LLC in New Jersey who forecasts little change to copper prices this week.
Global copper demand will expand by 4.3 percent in 2005 to 17.6 million tons, UBS AG analyst Daniel Brebner wrote in a July 22 report from London. That will beat production from mines and recycled scrap by 100,000 tons, Brebner said.
17.4 M tonnes a year with only 80kt in stock... thats not much is it.
Looks like the red metal will be up above $US1.70lb before you know it.
