Copper rises on strong demand forecasts

Copper rises on strong demand forecasts
By Neil Dennis
Copyright The Financial Times Limited 2007
Published: April 11 2007 12:06 | Last updated: April 11 2007 12:06


Copper hit a fresh seven-month high on Wednesday, as industrial metals prices remained underpinned by falling inventories and strong demand forecasts.

Three month copper futures on the London Metal Exchange rose to $7,945 a tonne, up 2.5 per cent from the previous session’s kerb close.

China’s copper imports reached a record 307,740 tonnes in March, while supplies of the metal monitored by the LME fell for the third-consecutive day.

”With risk appetite increasing the metals appear well underpinned,” said Robin Bhar at UBS. However, a correction was now overdue, Mr Bhar added.

Three month aluminium rose 0.5 per cent to $2,893 a tonne, its highest in 11 months, after Alcoa, the world’s biggest producer of the metal, said global consumption of the metal was expected to remain robust this year, with demand still strong from the aerospace sector.

Oil prices edged higher, following a recent sharp downturn. Nymex West Texas Intermediate was up 16 cents at $62.05 a barrel, while Brent crude added 71 cents to $68.12.