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Copper May Rise for a 2nd Day in London on Zambia Plant Closure

By Simon Casey

Oct. 4 (Bloomberg) -- Copper may rise in London for a second consecutive day in London on speculation that the closure of a smelter in Zambian will cut production of the metal used in wiring and plumbing.

The Mufulira plant owned by Glencore International AG closed because of a shortage of motor fuel, Reuters reported yesterday, citing an unidentified company spokesman. The plant has an annual production capacity of 450,000 metric tons, according to Glencore's Web site, equal to about 2.6 percent of global output.

``Reduced production in Zambia adds further pressure under a market already bubbling,'' said Angus MacMillan, an analyst in London at Bache Financial, in an e-mailed report yesterday.

Copper for delivery in three months on the London Metal Exchange rose as much as $12, or 0.3 percent, to $3,834 a ton. It was unchanged at $3,822 as of 9:03 a.m. local time. The metal traded on Sept. 29 at a record $3,835.

Copper consumers are relying on stockpiled metal as demand in 2005 is forecast to exceed production for the third consecutive year. Global consumption will rise 1.8 percent this year to 17 million tons, beating output by 25,000 tons, Stephen Briggs, a London-based analyst for Societe Generale, said in an e-mailed report yesterday.

Aluminum dropped on the LME, losing $6 to $1,860 a ton. Nickel fell $226.70 to $13,250. Zinc dropped $6.80 to $1,408 and tin was unchanged at $6,650. Lead gained $2.60 to $948.

To contact the reporter on this story: Simon Casey in London scasey4@bloomberg.net

Last Updated: October 4, 2005 04:16 EDT

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