Commodities Correspondent
Pratima's Feed
Jan 5, 2011

Copper could breach $12,000 by end-June

LONDON (Reuters) – Industrial metal copper could climb above $12,000 a tonne by the end of June as the market factors in a supply shortage, Peter Fertig, a consultant at Quantitative Commodity Research told Reuters.

Fertig forecast $7,525 a tonne for the average cash copper price for last year on the London Metal Exchange. Cash prices of the metal used in power and construction averaged $7,543 a tonne last year.

Dec 14, 2010

JPMorgan denies it holds 90 pct of LME copper stocks

LONDON (Reuters) – U.S. investment bank JPMorgan said it does not hold more than 90 percent of copper stock warrants in London Metal Exchange warehouses, but declined on Tuesday to comment on whether it had a smaller position.

A single holder, recently controlling 50-80 percent of copper stocks and cash contracts in London Metal Exchange warehouses, appears to have raised the position to above 90 percent, latest data from the world’s biggest metals market showed.

Dec 14, 2010

What will metal ETPs mean for investors?

LONDON (Reuters) – The launch of physically backed copper, tin and nickel exchange traded products on Friday has triggered a hot debate about the advantages and disadvantages for investors, consumers and producers.

The listings in London by UK-based ETF Securities are aimed mainly at institutional investors such as pension funds and insurance companies looking for exposure to hard assets such as copper, used in power and construction.

Dec 10, 2010

Q+A-What will metal ETPs mean for investors, consumers?

LONDON, Dec 10 (Reuters) – The launch of physically backed
copper, tin and nickel exchange traded products on Friday has
triggered a hot debate about the advantages and disadvantages
for investors, consumers and producers.

For a story on the ETPs launch: [ID:nLDE6B90D6]

The listings in London by UK-based ETF Securities are aimed
mainly at institutional investors such as pension funds and
insurance companies looking for exposure to hard assets such as
copper, used in power and construction. [ID:nLDE6B61QR]

Dec 9, 2010

Copper ETPs will skew supply, demand -Luvata poll

LONDON, Dec 9 (Reuters) – Physically backed copper exchange
traded products (ETPs) will distort market fundamentals and
prices, a survey carried out by international copper products
maker Luvata showed.

The poll carried out on Luvata’s website over the last few
weeks showed a majority, 52 percent of more than 250 customers,
prospective customers and industrial organisations said copper
ETPs “will skew supply and demand and increase volatility”.

Dec 6, 2010

Large LME metal holdings not unusual for big firms

LONDON, Dec 6 (Reuters) – Large holdings of London Metal
Exchange stocks can occur unintentionally and are not unusual
for large companies with many divisions and clients that delve
into metals markets.

The total of these positions, as reported by British
newspaper, The Daily Telegraph, is why U.S. bank JPMorgan
(JPM.N: Quote, Profile, Research) could be holding a dominant position of between 50 and
80 percent of copper stock warrants. <LME/WHD> [ID:nL3E6N601B]

Dec 2, 2010

LME sees dangers in E.U. financial regulation

LONDON (Reuters) – The London Metal Exchange (LME) warned on Thursday that the drive towards greater European financial regulation lacks sufficient UK representation and could become too political.

LME Chief Executive Martin Abbott also told the UK Parliament’s Treasury Committee in London that short-selling is essential to the functioning of commodities markets.

Nov 23, 2010

Commodities sag as Korea shelling fuels dollar

LONDON, Nov 23 (Reuters) – Commodity markets buckled on
Tuesday as worries over an exchange of artillery fire between
North and South Korea and concern that Ireland’s debt problems
could spread in the euro zone sent the dollar higher.

Crude oil and copper slipped after North Korea fired
artillery shells at a South Korean island, hitting a military
base and drawing return fire, prompting a flight to safe assets
such as gold and U.S. Treasury bonds. [ID:nL3E6MN09Z]

Nov 16, 2010

Fund view – Hermes says copper poised for new record highs

LONDON (Reuters) – Copper prices are set to hit new records over coming years as supply shortages meet strong demand from developing market consumers and investors seeking safety in hard assets, Hermes Fund Managers said on Tuesday.

Benchmark copper prices on the London Metal Exchange hit a record high of $8,966 on November 11, a gain of more than 45 percent since early June when markets were fretting about Greece and sovereign default in euro zone countries.

Nov 15, 2010

Copper surrenders to stronger dollar, China worry

LONDON, Nov 15 (Reuters) – Copper prices tumbled to their
lowest in more than a week on Monday, undermined by a firmer
dollar and growing expectations of monetary tightening in top
consumer China.

Steel ingredients were weak with zinc CMZN3 falling to
$2,264.75 a tonne, its lowest since October 8 and nickel sliding
to $21,980 a tonne, its lowest since September 8.