Metalworking (rec.crafts.metalworking) Discuss various aspects of working with metal, such as machining, welding, metal joining, screwing, casting, hardening/tempering, blacksmithing/forging, spinning and hammer work, sheet metal work.

Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1   Report Post  
Posted to rec.crafts.metalworking
external usenet poster
 
Posts: 45
Default Sleigh bells ring for price of copper

Sleigh bells ring for price of copper as mystery trader fills Christmas
stocking

Buyer acquires up to 90% of copper on London Metal Exchange as demand from
China and others sends value to record high

Jill Treanor guardian.co.uk, Wednesday 22 December 2010 19.43 GMT

A mystery trader has accumulated up to 90% of the copper on the London Metal
Exchange (LME) amid a dramatic rise in the price of the metal, driven by
demand from China and other emerging economies.

Copper prices have stormed to record levels this week and today closed at
$9,403 (£6,063) a tonne as speculation swirled about the identity of the
trading house sitting on the large position at the LME which has been
steadily rising since the middle of November. The position is worth around
$3bn and could include existing holdings as well as derivatives to buy the
metal in the future.

Other commodity prices also rose today. Oil pushed through the $90 a barrel
level for only the third time in two years, after the banking crisis raised
fears of a slow down in the world economy and a cut in demand for oil and
other commodities. Data in the US fuelled the surge after showing that crude
oil supply fell more than expected last week.

Precious metals have also hit fresh highs recently. Silver has reached its
highest levels 30 years while palladium has traded at prices last seen in
2001.

The creation of such a dominant position in copper has mesmerised traders
and helped fuel anxiety about the supply of copper, which is in turn driving
the price higher. As it is, mines are finding it difficult to keep up with
the demand for a metal that, according to analysts at Barclays Capital, is
at its highest ever levels.

Copper is used for wires and cables and is enjoying high levels of demand as
emerging economics install more electricity and telecommunications, but also
because renewable energy sources require the use of copper. But trading
today was also driven by new worries about supply caused by shipping
problems at the world's largest copper mine in Chile - Collahuasi.

The LME first began to report that a so-called dominant position in copper
had been accumulated on 17 November, but in recent days the size of this
position has increased from "50% to 80%" to "80% to 90%". While US
investment bank JP Morgan has been linked to the position, market sources
insisted that this was not the case.

A festive-themed note from analysts at Barclays Capital predicted that
rising demand for commodities could keep prices buoyant next year. "Europe
might be facing Arctic-type temperatures, but the base metals markets are
heating up. Copper is the metal that appears to be everyone's favourite
stocking filler, with prices rising to a new record high, punching well
above $9,000 per tonne. The sleigh bells are ringing for the other metals
too, driven by improving demand, the ongoing economic recovery and
tightening market balances," Barclays Capital said.

"[The year] has witnessed a number of surprises, but the real Christmas
cracker has been the strength of the recovery in demand, which will be a
record high for all the base metals except tin. Emerging market demand has
been the single biggest swing factor, coming in well above market
forecasts."

China consumes 35% to 40% of the world's annual copper output, although
there is some expectation in the markets that the metal could be swapped for
aluminium in some products, which would help to ease pressure on demand. The
demand for commodities is also being driven by the creation of so-called
exchange traded funds, which allow investors to bet on the price of metals
such as copper.

The LME said it was not unknown for one trader to hold large positions.
Diarmuid O'Hegarty, head of regulation and compliance, said: "Dominant long
positions are not unusual and the LME has proven processes for dealing with
these positions."

To stop buyers cornering the market and manipulating the price, the rule is
that once a trader has more than 50% they are obliged to lend the metal back
to the market, if the demand arises, at predetermined prices set by the LME.

"As a market of last resort, we do not stop people from buying metal; we
restrict their behaviour depending on how much they buy. In times of short
supply the LME stocks are often used as a source of material and in times of
excess supply LME warehouses are used to store the metal," O'Hegarty said.
http://www.guardian.co.uk/business/2...s-demand-china

  #2   Report Post  
Posted to rec.crafts.metalworking
external usenet poster
 
Posts: 388
Default Sleigh bells ring for price of copper

?
"Chomp Noamsky" wrote in message
...
Sleigh bells ring for price of copper as mystery trader fills Christmas
stocking

Buyer acquires up to 90% of copper on London Metal Exchange as demand from
China and others sends value to record high

Jill Treanor guardian.co.uk, Wednesday 22 December 2010 19.43 GMT

A mystery trader has accumulated up to 90% of the copper on the London
Metal Exchange (LME) amid a dramatic rise in the price of the metal,
driven by demand from China and other emerging economies.

Copper prices have stormed to record levels this week and today closed at
$9,403 (£6,063) a tonne as speculation swirled about the identity of the
trading house sitting on the large position at the LME which has been
steadily rising since the middle of November. The position is worth around
$3bn and could include existing holdings as well as derivatives to buy the
metal in the future.

Other commodity prices also rose today. Oil pushed through the $90 a
barrel level for only the third time in two years, after the banking
crisis raised fears of a slow down in the world economy and a cut in
demand for oil and other commodities. Data in the US fuelled the surge
after showing that crude oil supply fell more than expected last week.

Precious metals have also hit fresh highs recently. Silver has reached its
highest levels 30 years while palladium has traded at prices last seen in
2001.

The creation of such a dominant position in copper has mesmerised traders
and helped fuel anxiety about the supply of copper, which is in turn
driving the price higher. As it is, mines are finding it difficult to keep
up with the demand for a metal that, according to analysts at Barclays
Capital, is at its highest ever levels.

Copper is used for wires and cables and is enjoying high levels of demand
as emerging economics install more electricity and telecommunications, but
also because renewable energy sources require the use of copper. But
trading today was also driven by new worries about supply caused by
shipping problems at the world's largest copper mine in Chile -
Collahuasi.

The LME first began to report that a so-called dominant position in copper
had been accumulated on 17 November, but in recent days the size of this
position has increased from "50% to 80%" to "80% to 90%". While US
investment bank JP Morgan has been linked to the position, market sources
insisted that this was not the case.

A festive-themed note from analysts at Barclays Capital predicted that
rising demand for commodities could keep prices buoyant next year. "Europe
might be facing Arctic-type temperatures, but the base metals markets are
heating up. Copper is the metal that appears to be everyone's favourite
stocking filler, with prices rising to a new record high, punching well
above $9,000 per tonne. The sleigh bells are ringing for the other metals
too, driven by improving demand, the ongoing economic recovery and
tightening market balances," Barclays Capital said.

"[The year] has witnessed a number of surprises, but the real Christmas
cracker has been the strength of the recovery in demand, which will be a
record high for all the base metals except tin. Emerging market demand has
been the single biggest swing factor, coming in well above market
forecasts."

China consumes 35% to 40% of the world's annual copper output, although
there is some expectation in the markets that the metal could be swapped
for aluminium in some products, which would help to ease pressure on
demand. The demand for commodities is also being driven by the creation of
so-called exchange traded funds, which allow investors to bet on the price
of metals such as copper.

The LME said it was not unknown for one trader to hold large positions.
Diarmuid O'Hegarty, head of regulation and compliance, said: "Dominant
long positions are not unusual and the LME has proven processes for
dealing with these positions."

To stop buyers cornering the market and manipulating the price, the rule
is that once a trader has more than 50% they are obliged to lend the metal
back to the market, if the demand arises, at predetermined prices set by
the LME.

"As a market of last resort, we do not stop people from buying metal; we
restrict their behaviour depending on how much they buy. In times of short
supply the LME stocks are often used as a source of material and in times
of excess supply LME warehouses are used to store the metal," O'Hegarty
said.
http://www.guardian.co.uk/business/2...s-demand-china


J.P. Morgan's recent single session purchase of over 50% of the London
Metals Exchange's 350,000 tonne copper reserve is a case in point. By
eliminating so much copper from the available supply, J.P. Morgan
single-handedly established a new price record in copper.



Read mo
http://www.benzinga.com/10/12/689006...#ixzz18ublhevT


Its a trap for the suckers, kinda like mortage backed securities.
Might be the next bubble - bailout in progress.

Best Regards
Tom.


Reply
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules

Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Price of copper and aluminum Jim Stewart Metalworking 13 October 11th 08 03:59 AM
End-feed or solder ring copper fittings Mike Dodd UK diy 12 December 30th 06 02:31 PM
Scrap Price for Copper TheScullster UK diy 26 September 22nd 06 11:26 PM
Price Difference: Copper Vs. Pex Bobby Walsh Home Repair 0 January 17th 05 07:30 PM
Non-copper wire in ring main? Ewan MacIntyre UK diy 37 January 6th 04 07:01 PM


All times are GMT +1. The time now is 10:24 AM.

Powered by vBulletin® Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Copyright ©2004-2024 DIYbanter.
The comments are property of their posters.
 

About Us

"It's about DIY & home improvement"