Copper may fall as prices no longer reflect demand
Monday, 10 August 2009
LONDON, Aug. 9 (Bloomberg): Copper may decline on speculation that a month-long rally has left prices no longer reflecting the outlook for demand.
Copper is heading for a fourth week of gains with prices 24 per cent higher than on July 10. During the same period stockpiles in warehouses monitored by the London Metal Exchange have risen by about 10 per cent.
Seven of 13 analysts, investors and traders surveyed by Bloomberg, or 54 per cent, said copper would drop next week. Five predicted gains and one said prices would be little changed. Copper for three-month delivery rose 5.1 per cent this week to $6,010 a ton at 5:15 p.m. yesterday on the LME.
Copper has almost doubled this year, helped by demand from China, the world's biggest consumer of the metal.
The weekly copper survey has forecast prices accurately in 24 of the past 49 weeks, or 49 per cent of the time.
Copper is heading for a fourth week of gains with prices 24 per cent higher than on July 10. During the same period stockpiles in warehouses monitored by the London Metal Exchange have risen by about 10 per cent.
Seven of 13 analysts, investors and traders surveyed by Bloomberg, or 54 per cent, said copper would drop next week. Five predicted gains and one said prices would be little changed. Copper for three-month delivery rose 5.1 per cent this week to $6,010 a ton at 5:15 p.m. yesterday on the LME.
Copper has almost doubled this year, helped by demand from China, the world's biggest consumer of the metal.
The weekly copper survey has forecast prices accurately in 24 of the past 49 weeks, or 49 per cent of the time.