5 April 2006

Reuters Business Copper hovers near new peak as fund moneyChannel | Reuters.com

Reuters Business Channel | Reuters.com: "SINGAPORE, April 4 (Reuters) - Copper prices edged lower but stayed within striking distance of a record peak on Tuesday, a day after the red metal soared 4 percent in London on renewed fund buying and concerns over disuptions in global supplies.
By 0706 GMT, London Metal Exchange copper for delivery in three months was down $10 from Monday's London close at $5,605/$5,615 a tonne.
'Copper has now hit $5,600 and it is only a matter of time before we see $6,000 as fund money flowing into commodities seems almost limitless at this stage,' a Hong Kong-based metals trader said.
On Monday, LME copper jumped $225, or 4.17 percent, to close at $5,615 in London. It hit a record $5,616 as funds launched a new quarter with a bang on talk that copper was in short supply.
Copper, used in construction and electronics, has risen nearly 28 percent this year as global inventories declined and worries mounted over deliveries from leading producing countries such as Indonesia, Zambia, Mexico and Chile.
The metal was below $1,400 a tonne in November 2001.
Monday's sharp gains in LME copper helped Shanghai copper futures <0#SCF:> jump to a record high on Tuesday, with gains capped by daily trading limits.
The most active Shanghai contract, June, rose briefly to its daily upper trading limit of 52,000 yuan ($6,476) a tonne in early trade and closed at 51,760 yuan, up 1,580 yuan from the previous close.
Shanghai spot copper prices were between 51,950 and 52,150 yuan per tonne, up 1,700 yuan from Monday. "

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