April 21, 2010, 2:10 PM EDT
By Millie Munshi and Anna Stablum
April 21 (Bloomberg) -- Copper prices rose for the second straight day on signs of an increase in global metal demand.
“Continuing growth in the standard of living” in China will buoy copper usage, said Richard Adkerson, the chief executive officer of Freeport-McMoRan Copper & Gold Inc. Consumption is also improving in the U.S., Japan and Europe, he said. The price of the metal has jumped 71 percent in the past 12 months.
“We’re seeing signs of improved demand for our products in the developed world,” Adkerson said to today on a conference call with investors. “It is leading us to begin to change our strategy” and to invest more in expanding mine output, he said.
Copper futures for July delivery rose 2.2 cents, or 0.6 percent, to $3.5575 a pound on the Comex in New York. Yesterday, the price climbed 0.5 percent.
Freeport, the world’s largest publicly traded copper producer, reported a surge in first-quarter profit to $897 million from $43 million a year earlier. The company is based in Phoenix.
Earlier, copper dropped as much as 1.2 percent after China took more steps to rein in lending and property markets, triggering concern that metal demand will ease.
“Measures implemented by Chinese authorities should cool down the economy,” said Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt. “As the economy cools down, demand for commodities will probably contract as well.”
Copper for delivery in three months fell $31, or 0.4 percent, to $7,759 a metric ton ($3.52 a pound) on the London Metal Exchange. Aluminum, nickel, zinc, lead and tin prices also declined.
--With assistance from Li Xiaowei in Shanghai and Glenys Sim in Singapore. Editors: Patrick McKiernan, Daniel Enoch
To contact the reporters on the story: Anna Stablum in London at astablum@bloomberg.net; Millie Munshi in New York at mmunshi@bloomberg.net
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
Source: http://www.businessweek.com/news/2010-04-21/copper-rebounds-as-freeport-says-global-demand-is-climbing.html
