Copper demand is “stronger” than U.S. economic signals suggest, said Freeport-McMoRan Copper & Gold Inc., the world’s biggest publicly traded producer of the metal.

“Physical markets are really stronger than economic indicators in the U.S.,” Freeport Chief Executive Officer Richard Adkerson said today on a conference call with investors. “Our order books are filling up more strongly than they have in some time.”

Rising demand in China, the world’s biggest buyer, and supply constraints will combine to support copper prices, Adkerson said. Phoenix-based Freeport is “very, very positive” on the outlook for the metal, he said.

Copper futures have more than more than quadrupled since 2002 as mining companies struggled to keep up with rising demand. Before today, prices dropped 10 percent this year on concern that slowing U.S. growth would limit consumption.

“Issues with falling exchange stocks and issues with scrap markets” signal limited supply for the metal, Adkerson said.

Freeport reported second-quarter profit that topped analysts’ estimates because of higher-than-forecast sales of the metal.

Copper futures for September delivery rose 9.5 cents, or 3.2 percent, to $3.0965 a pound at noon on the Comex in New York.

To contact the reporter on the story: Millie Munshi in New York at [email protected].

Source: http://www.bloomberg.com/news/2010-07-21/copper-demand-stronger-than-signaled-by-economy-freeport-s-adkerson-says.html