Daily Metal Market News & Metal Prices
 
Daily Metal Prices & Market News
Sunday 07th of September 2008
Friday, September 28, 2007

Speculators put pressure on copper

Story link: Speculators put pressure on copper
by Gill Montia
Speculators put pressure on copper

Speculators are reported to have bought almost all the copper in London Metal Exchange (LME) warehouses, leaving the metal price exposed to strong price rises.

Some traders believe that the party or parties involved are funds, but their identity is being protected by LME confidentiality rules.

Warrants give their holders the right to own up to 129,775 tonnes of copper, and the dominant position is worth approximately $1 billion.

The price of copper has increased by 20% since mid-August and this week reached a two month-high of $8,070.

The metal is predominantly used by the construction industry and its current price is around $800 below the all-time high in May 2006, of $8,800.

According to experts, LME copper stocks are now less than three days’ worth of global consumption.

However, traders are confident that there is plenty of material in the European physical market, where there has been a level of oversupply.

According to John Kemp, economist at Sempra Metals, “Some large dominant positions have emerged” but “it is purely an investment phenomenon rather than genuine demand.”

 

Add to Bookmarks:

ADD TO NETSCAPE     ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL


Related posts to: Speculators put pressure on copper

Gold/US dollar connection unravels ...

Investors liquidate gold ...

Nickel cash price above $50,000 per tonne ...

Platinum rises on continuing power problems in South Africa ...

Tin, lead set new records ...

Latest Metals News:

Latest News  Copper losses pull other metals prices lower

Latest News  Xstrata increases stake in Indophil

Latest News  BHP fatality closes Australian iron ore mines

Latest News  Palladium gains as other precious metals see declines

Latest News  EU halts investigations into BHP’s bid for Rio

Latest News  Aluminium falls amid gains for other base metals

Latest News  Lomin rejects Xstrata bid but leaves door ajar

Latest News  Metals drop with crude oil prices

Latest News  Antofagasta forges ahead despite rising costs

Latest News  Copper prices lower on jump in inventories


Previous: « Platinum in new record
Next: Gold adds over $10 on weak dollar »

Visited 607 times, 1 so far today

Gold ($/troy ounce):

Silver ($/troy ounce):

Platinum ($/troy ounce):