Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?



Copper Prices Rise On Lower Surplus

By  +Follow August 23, 2013 11:10AM
Tickers Mentioned:

Copper futures gained for a second consecutive day heading into the final hours of the week of trading, the result of smaller inventories and underwhelming domestic economic data that allayed fears about next month’s anticipated reduction of federal stimulus spending.

The London Metal Exchange (LME) saw stockpiles 3.4 percent lower for the week, the biggest drop in inventory in almost a year, as futures due for delivery in December were up 0.4 percent to $3.35 per pound on the New York Comex, while the LME saw almost identical results on a gain of 0.2 percent. Inventories were lower for the 28th consecutive trading session to 564,225 tons.

Stronger prices for the metal could be offset by modest reductions in the pace of Chinese growth, as the world’s largest consumer of copper tightens liquidity in an attempt to head risks in financial markets.

Friday’s weaker home sales figures also figured in to copper’s gains on the day, as investors interpreted the data as the sort of variable that would convince the Fed to postpone the beginning of the gradual curtailment of its $85 billion a month in asset purchases.

The future of copper prices will also be to some extent dependent on sustained demand in China, but also throughout the developing world. Large mining companies like BHP Billiton (BHP) , Vale SA (VALE) , and Rio Tinto (RIO) have posted record numbers for iron ore production, but have received less attention for greatly increased copper output through the first half of 2013. This week’s significant drop in stockpiles suggests that demand will remain unchanged for the near-term.

[Image: Copper, courtesy of Wikimedia Commons]

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

By  +Follow August 23, 2013 11:10AM



blog comments powered by Disqus

 Today's Must Reads

What Crowdfunding Leaders Are Saying About the SEC’s Approval of Title III

How the Drug Price Scrutiny is Affecting Pharma Stocks

8 More Tips for Choosing the Right Crowdfunding Platform

Will the Post-Smartphone Era Bring Wearable Drones?

3 Cloud Stocks That Pay Dividends


Small-cap stocks offer investors many benefits, ranging from higher growth potential to overlooked value opportuni... in Equities.com's Hangs on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register