Friday, June 03, 2005
Copper Rises in London as Shortage on London Metals Exchange Worsens
Bloomberg.com
Copper futures rose for a third day in London as a shortage worsened, making the metal for immediate delivery 6 percent more expensive than for delivery in three months, the biggest gap in eight years.
Copper for immediate delivery on the London Metal Exchange was offered at $209 a metric ton more than the contract for delivery in three months, a level last seen in July 1997. In a market with adequate supply, prices are higher for later delivery to recover costs including storage and interest.
Two market participants hold most LME-monitored copper stocks as of May 31, according to the exchange's Web site.
The shortage of LME copper will deepen if ``the holder of much of he stocks is about to take delivery and ship the metal to China,'' MacMillan said, referring to a speculation circulating on the LME.
Stockpiles monitored by the Shanghai Futures Exchange, second to the LME in terms of copper futures trade, fell 30 percent from a week ago to 19,848 tons, a 4-week low. China is the world's largest copper consumer.
Copper futures rose for a third day in London as a shortage worsened, making the metal for immediate delivery 6 percent more expensive than for delivery in three months, the biggest gap in eight years.
Copper for immediate delivery on the London Metal Exchange was offered at $209 a metric ton more than the contract for delivery in three months, a level last seen in July 1997. In a market with adequate supply, prices are higher for later delivery to recover costs including storage and interest.
Two market participants hold most LME-monitored copper stocks as of May 31, according to the exchange's Web site.
The shortage of LME copper will deepen if ``the holder of much of he stocks is about to take delivery and ship the metal to China,'' MacMillan said, referring to a speculation circulating on the LME.
Stockpiles monitored by the Shanghai Futures Exchange, second to the LME in terms of copper futures trade, fell 30 percent from a week ago to 19,848 tons, a 4-week low. China is the world's largest copper consumer.
Labels: Copper
