Bloomberg News

Copper Jumps as Output Data Boosts Demand Outlook: LME Preview

January 03, 2012

Jan. 3 (Bloomberg) -- Copper jumped to a three-week high in London on speculation increased manufacturing output from China to the U.S. may boost demand for industrial metals.

Market News:

-- Asian stocks rose to a three-week high, commodities advanced and the Australian dollar climbed on signs of increased manufacturing output around the world. The cost of insuring Asia-Pacific bonds from default fell. NSN LX7MKM6JIJUO <GO>

-- Manufacturing in India and China improved in December, a sign the world’s fastest-growing major economies are withstanding Europe’s debt crisis. NSN LX78G36KLVRB <GO>

-- Manufacturing in the U.S. probably expanded in December at the fastest pace in six months, remaining at the forefront of the expansion entering 2012, economists said before a report today. NSN LX7HJA0YHQ0X <GO>

-- Governments of the world’s leading economies have more than $7.6 trillion of debt maturing this year, with most facing a rise in borrowing costs. NSN LX7CLP6JTSEA <GO>

-- Singapore’s economy shrank for the second time in three quarters, highlighting Asia’s vulnerability to the European debt crisis even as manufacturing strengthens in India and China. NSN LX7H490UQVI9 <GO>

-- Moves by the Federal Reserve to flood the world with dollars are doing little to dent the currency’s value, bolstering the appeal of U.S. assets at a time when the government needs the support of foreign investors the most. NSN LX7ET26JTSE8 <GO>

-- Speculators increased wagers on rising commodity prices by the most since August 2010 on signs that sustained economic growth will drive a rebound in raw materials from their first annual slump since the recession. NSN LX7LTK6JTSE8 <GO>

Metals News:

-- South Korea, Asia’s third-biggest purchaser of base metals, plans to spend 47 percent more this year to boost reserves, the state-run stockpiling agency said. NSN LX7CHG0YHQ0X <GO>

-- Codelco, locked in a battle with Anglo American Plc over the world’s fifth-largest copper mine, notified the London-based company of its intention to buy 49 percent of the Anglo unit that owns the mine in central Chile. NSN LX6SZK0YHQ0X <GO>

-- Sterlite Industries (India) Ltd., the nation’s biggest copper producer, raised prices of copper cathodes by 0.6 percent to 431,199 rupees a metric ton, effective Jan. 1, according to its website. NSN LX7EKC6JTSE8 <GO>

-- Iron ore prices may decline by as much as 11 percent on average this year because of concern that global economic growth may falter, according to IG Markets institutional dealer Chris Weston. NSN LX7DB76TTDS0 <GO>

-- KGHM Polska Miedz SA, Poland’s sole copper and silver producer, may pay a lower tax than expected after the Finance Ministry relaxed its plan for a new levy it plans to impose this year for extracting the metals. NSN LX6IM16KLVR4 <GO>

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