Relevant Cliff's Notes: the Financial Times said today that they expect copper and lead prices to continue to rise 
Copper prices lead rush for metal
By Kevin Morrison in London
Published: April 10 2007 21:13 | Last updated: April 10 2007 21:13
Metal markets are in the middle of another price boom that may eclipse the one seen last spring, with copper, nickel, lead and tin all rising strongly in trading on Tuesday.
This boom is more broadly-based than last year’s, but supported by the same cocktail of factors: strong Chinese and global demand, constrained supplies, low levels of metal stockpiles and heightened financial speculation.
Metal prices had a shaky start to the year amid expectations of slowing global economic demand, rising supplies and concerns about the knock-on effects of the US housing slowdown.
But sentiment has turned since mid-February, particularly towards copper, the flag-bearer of the base metals markets, on the assumption of stronger-than-expected demand in China, the world’s biggest copper consumer.
That view was supported by Chinese customs data on Tuesday, showing a record 307,740 tonnes of copper were imported last month, with imports up 58 per cent in the first three months of the year.
The benchmark copper prices rose more than 5 per cent to a seven-month high of $7,710 a tonne on the London Metal Exchange, and have risen more than 48 per cent since early February.
With such strong upward momentum, hedge funds are talking about copper prices exceeding the record $8,790 a tonne reached last May.
Stronger-than-expected US non-farm payroll data also helped boost sentiment in the metal markets, which are seen as a measure of global economic activity.
“I think copper is looking overdone, and needs another impetus such as a supply disruption, because all the good news is already in the price,” said Robin Bhar, a metals strategist at UBS.
Unlike last year, when the price rally was confined to copper, aluminium, zinc and nickel, this time lead and tin are also touching record highs.
Nickel prices are more than double what they were last May when they reached a then-record of $21,850 a tonne, and burst through the $50,000 a tonne level on the LME on Tuesday, before easing to $48,500.
Strong demand for stainless steel, which consumes about two-thirds of nickel supplies, and delays to new mining projects in Australia and New Caledonia have tightened the nickel market.
Copper prices lead rush for metal
By Kevin Morrison in London
Published: April 10 2007 21:13 | Last updated: April 10 2007 21:13
Metal markets are in the middle of another price boom that may eclipse the one seen last spring, with copper, nickel, lead and tin all rising strongly in trading on Tuesday.
This boom is more broadly-based than last year’s, but supported by the same cocktail of factors: strong Chinese and global demand, constrained supplies, low levels of metal stockpiles and heightened financial speculation.
Metal prices had a shaky start to the year amid expectations of slowing global economic demand, rising supplies and concerns about the knock-on effects of the US housing slowdown.
But sentiment has turned since mid-February, particularly towards copper, the flag-bearer of the base metals markets, on the assumption of stronger-than-expected demand in China, the world’s biggest copper consumer.
That view was supported by Chinese customs data on Tuesday, showing a record 307,740 tonnes of copper were imported last month, with imports up 58 per cent in the first three months of the year.
The benchmark copper prices rose more than 5 per cent to a seven-month high of $7,710 a tonne on the London Metal Exchange, and have risen more than 48 per cent since early February.
With such strong upward momentum, hedge funds are talking about copper prices exceeding the record $8,790 a tonne reached last May.
Stronger-than-expected US non-farm payroll data also helped boost sentiment in the metal markets, which are seen as a measure of global economic activity.
“I think copper is looking overdone, and needs another impetus such as a supply disruption, because all the good news is already in the price,” said Robin Bhar, a metals strategist at UBS.
Unlike last year, when the price rally was confined to copper, aluminium, zinc and nickel, this time lead and tin are also touching record highs.
Nickel prices are more than double what they were last May when they reached a then-record of $21,850 a tonne, and burst through the $50,000 a tonne level on the LME on Tuesday, before easing to $48,500.
Strong demand for stainless steel, which consumes about two-thirds of nickel supplies, and delays to new mining projects in Australia and New Caledonia have tightened the nickel market.
