Copper Climbs on Improved Demand Outlook in China: LME Preview
posted on
Oct 04, 2010 10:10AM
Latest assay results have confirmed that copper mineralization has a minimum strike length of approximately 800 metres and a width of approximately 250 metres
By Claudia Carpenter
Oct. 4 (Bloomberg) -- Copper climbed for a second day, trading near a 26-month high, as the consumption outlook improves in China, the world’s largest user.
Market News:
-- Wall Street economists are reviving a bet that the global economy will withstand the U.S. slowdown.
-- China will address “structural problems” and stabilize its economy by increasing domestic demand, Premier Wen Jiabao said.
-- Asian shares and emerging market currencies strengthened on speculation developing economies will maintain growth even as U.S. and Europe slow. The yen weakened, boosting earnings prospects for Japanese exporters.
-- UBS AG and Credit Suisse Group AG need to hold almost double the capital required under Basel III rules, said a Swiss government-appointed panel, proposing the first capital surcharge on too-big-to-fail banks.
-- The U.S. warned Americans traveling in Europe to be vigilant following weeks of discussion within the Obama administration about threats of an attack by an al-Qaeda-affiliated terrorist group, officials said.
-- A second round of bond purchases by the Federal Reserve may have the unintended consequences of pushing borrowing costs higher, say a growing number of U.S. government securities dealers, strategists and economists.
Metals News:
-- Global steel demand growth will probably fall to 5.3 percent next year on slowing sales in China, the world’s largest consumer of the metal, the World Steel Association said.
-- Record gold prices and rising agriculture costs may signal a “coming wave” of accelerating consumer prices, according to brokerage GoldCore Ltd.
-- Japan, the world’s biggest importer of rare earths, plans to send a study group to Mongolia this month as the nation tries to diversify its supply sources.
-- Copper supplies probably lagged behind demand by 250,000 metric tons to 300,000 tons so far this year, against a balanced market in the first nine months last year, Macquarie Group Ltd. said.
-- Uranium has a “significant risk” of higher prices if there are any supply disruptions, Macquarie Group Ltd. said.
Metal Prices:
--Editors: Claudia Carpenter, John Deane
To contact the reporter on this story: Claudia Carpenter in London at [email protected]
To contact the editor responsible for this story: Claudia Carpenter at [email protected].
Source: http://www.businessweek.com/news/2010-10-04/copper-climbs-on-improved-demand-outlook-in-china-lme-preview.html