Copper Rises From Two-Week Low in New York as Inventories Shrink
July 19 (Bloomberg) -- Rossa White, chief economist at Davy Research, talks about Ireland's credit rating cut by Moody’s Investors Service. He speaks from Dublin with Andrea Catherwood on Bloomberg Television's "The Pulse" (This is an excerpt. Source: Bloomberg)
Copper prices rose from the lowest level in almost two weeks after inventories dropped for the 22nd straight session, matching this year’s longest slump.
Stockpiles monitored by the London Metal Exchange fell 0.8 percent today to 422,850 metric tons, the lowest level since Nov. 20. Supplies are down 16 percent this year, signaling that demand has been steady amid reports suggesting the global economy is cooling.
“A slowing in momentum of growth does not mean that the global economy is heading toward imminent disaster, and in some economies, it is a welcome sign to avoid overheating,” Barclays Capital in London said in a report. “We would recommend buying copper on dips.”
Copper futures for September delivery rose 0.85 cent, or 0.3 percent, to $2.938 a pound on the Comex in New York. Earlier, the metal touched $2.925, the lowest level for a most- active contract since July 6. The price has dropped 12 percent this year.
The metal pared gains of as much as 1.1 percent today after a private report showed confidence among builders in the U.S. fell to the lowest level since April 2009. Construction accounts for a quarter of all copper consumption, according to the Copper Development Association.
“Housing is still an important factor for copper, so any weakness there will have an impact on prices,” said Gijsbert Groenewegen, a partner at Gold Arrow Capital Management in New York. “Copper is in a wait-and-see mode. The next few weeks will be crucial in terms of gauging demand.”
Copper for delivery in three months rose $25, or 0.4 percent, to $6,510 a metric ton ($2.95 a pound) on the LME.
Tin, lead and zinc also gained in London. Aluminum and nickel fell.
To contact the reporters on the story: Anna Stablum in London at astablum@bloomberg.net; Millie Munshi in New York at mmunshi@bloomberg.net.
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
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