Copper ar another Record HIGH!!!

Discussion in 'Economics' started by S2007S, Jan 4, 2011.

  1. S2007S


    No need to worry, this is a sign that global growth is on the way!!!!

    Do not worry about inflation!!!!

    Copper at another record high
    January 4, 2011 - 7:09AM

    US copper rose to a third successive record high on Monday, extending last year's 33 per cent gain on quickening US manufacturing growth and a slow-down in China that tempered fears of further rate rises.

    Often seen as a good barometer for the global economy, copper rallied as much as five per cent after the official Chinese purchasing managers' index edged down in December, easing concerns that rising inflation would lead the government to take more steps to control growth.

    It rose in tandem with other risk assets including US equities as data showed the US manufacturing sector grew for a 17th straight month in December and construction spending reached a six-month high, reinforcing the growing sense of optimism about the economic recovery.
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    "(Copper) is showing investor sentiment about the economic outlook going forward is quite good," said Matthew Zeman, head of trading with LaSalle Futures Group in Chicago.

    "If this data stream stays positive, it will continue to go up."

    COMEX copper for March delivery settled up 1.05 cents at $US4.4575 per lb, after dealing between $US4.4315 and a new all-time high at $US4.4980.

    Volumes was thin with both London and Shanghai markets shut, with a little more than 17,000 lots traded on COMEX, about 50 per cent below the 30-day average, according to Thomson Reuters preliminary data.

    The positive momentum was enough to offset news that the world's No. 3 copper mine, Chile's Collahuasi, had resumed some copper concentrate exports via an alternative port after its key sea terminal was closed more than two weeks ago.

    Still, the deliveries were not yet big enough to lift a two-week-old force majeure -- a contract clause that frees it of liability over delays -- in place since Dec 20.

    Copper, one of the commodities most sensitive to economic growth due to its use in construction and power lines, ended 2010 with a hefty 33-per cent gain, making it one of the best performing sectors among the broader metals markets.

    It is also the most exposed to China, which uses over one-third of the world's copper.

    Concern that Beijing would step up its efforts to cool inflation with more rate rises and reserve requirement increases -- which could cool demand -- eased on Monday after the PMI data suggested it may avoid harsher measures.

    "The underlying fundamental thesis that has helped drive copper to new highs has been a strong global recovery... the stronger economic data from the US, particularly the ISM manufacturing figures, and the lighter inflation data out of China bodes extremely well for that thesis," said Adam Sarhan at New York-based financial advisory Sarhan Capital.

    Analysts expect copper to extend that move by another 10 per cent in 2011 as consumers contend with a shortfall of metal estimated by Barclays Capital to be more than 800,000 tonnes or almost four per cent of forecast output this year.

    "Overall, this market is going to continue to move higher. There are concerns right now about supply not being able to keep up with demand as this global recovery continues to gather momentum," LaSalle's Zeman said.

  2. Maverick74


    I don't understand you. I really don't. On the one hand you start a million threads mocking the rise in the broad markets. On the other hand you rant about inflation. Not even realizing I guess that because the s&p is denominated in dollars, it's the inflation that is actually pushing the market higher. Somehow this concept completely eludes you. How is that possible? Seriously? how?

    Wags, you nailed this guy from the get go two years ago.
  3. Copper is not going up because FED is printing money

    It is going up

    1) Chinese wanna diversify away from USD

    2) too much speculation just like in oil
  4. Why does china want to diversify away from the USD? because the FED is printing money. Therefore, copper is going up because the fed is printing money.
  5. clacy


    Guys like this don't trade, IMO. They are too occupied with being "bearish".

    Bearish on every market and asset class. "If it's going up, it's because it's rigged......."

    Meanwhile the market has done pretty well in the past 2 years...
  6. Maverick74


    Yeah I know he doesn't trade. I know he is 20 years old and in college taking eco 101. Honestly, I just want him to see the fallacy in his thinking.
  7. This is why im glad i own fcx from 75. :D

    I'm looking to get long oil and SLV, and maybe water on their retracements.