Supply deficits prediction sends copper prices near record high

Copper prices were up on Thursday after mining company BHP Billiton, the world’s largest, said that there would likely be a shortage of copper concentrate through the end of 2008. The shortages, it said, would be due to a number of factors, including equipment shortages, labour disputes, and rising demand. New mines and production facilities will not be online until that time. At the same time, the London Metal Exchange said that inventories of copper in its warehouses have dropped to just two days global demand, their lowest level since April 19.

All this news combined to raise three-month copper on the LME by $545 to $7,650 per tonne. The price was still a bit off its record high of $7,680 per tonne.

Gold was up to a new 25-year high of $677.40 per troy ounce during the day as investors anticipated a decision from the United Nations Security Council on a resolution concerning the current dispute with Iran over their nuclear ambitions. At midday in New York, spot gold was at $671.90 per troy ounce, up $4.90 on the previous day’s close.