17 April 2006

Copper Futures Rise to Record in Shanghai

Bloomberg.com: Commodities: "April 17 (Bloomberg) -- Copper futures in Shanghai rose to a record for a third session after China's President Hu Jintao said the nation's economic growth accelerated to 10.2 percent in the first quarter, boosting prospects for metals consumption.
The figure, given by Hu in Beijing yesterday, is higher than every forecast in a Bloomberg News survey of 25 economists and compares with 9.9 percent growth in the fourth quarter. The Bloomberg survey had a median estimate of 9.6 percent.
``Hu's comments that China's economy accelerated is a surprise and very encouraging,'' said Shen Haihua, vice president with Maike Futures Co. ``Strong cash prices indicate tight supply. I don't see any slowdown in copper consumption.''
Copper prices in Shanghai have increased 82 percent in the past year on demand for the metal in homes, cars and appliances. Metal for delivery in July rose as 1,820 yuan, or 3.2 percent, to settle at 58,740 yuan ($7,326) on the Shanghai Futures Exchange. The contract earlier rose by the daily fluctuation limit 4 percent to a record 59,190 yuan a ton.
Copper for cash delivery in Changjiang, the biggest spot market in Shanghai, rose as much as 1,850 yuan, or 3.2 percent, to a record 58,850 yuan a ton. Chinese users have to pay a 17 percent value-added tax, 2 percent import tax, premiums and freight charges for imported copper.
Demand for cables and wires in China, the biggest consumer of copper, will rise to 3.35 million tons by 2010 from an expected 2.45 million tons in 2006, He Shisi, an official at the China Electrical Equipment Industry Association, said on April 14. Installation of power grids in the rural areas and power construction will boost demand for copper, He said. April 17 (Bloomberg) -- Copper futures in Shanghai rose to a r"

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