Copper breaks $1-mark, best since 1980

Copper, which along with most other base metals has been enjoying an excellent year, has topped the $1(US)-per-lb-mark. Copper futures have also been “flying high” on Comex in New York.

The “dollar” barrier was broken during the first week of November. At presstime, Hudson Bay Mining and Smelting, owned by Inspiration Resources, was selling the base metal at $1.15 ($1.46C).

Previous to 1987, copper prices were in the doldrums, averaging (on the lme) between 62 cents and 65 cents from 1984 to 1987. The base metal entered this year at just over 60 cents .

Copper last moved above $1 during the 6-month period from November, 1979, to April, 1980, peaking in the $1.40-$1.50 range.

Kleinwort Grieveson’s Mining Weekly reports copper stocks are at their lowest level since 1973. Raymond Goldie of Richardson Greenshields said prices have been strong, in spite of weakening demand and increasing production, because inventories are low and because it takes several months for any increase in mine production to make its way to consumers.

“The most recent surge in demand occurred at a time when the inventories of both consumers and producers were at very low levels,” he said.

The analyst said most of the increase in demand for copper during the past year has come from new fabricating plants in the Pacific Rim, not from end-users, and so is not sustainable. Also, he says there is room for increases in production by the world’s smelters and refineries.

Goldie forecast in July strong copper prices until the end of this year, to be followed by a decline to below 70 cents , and he says he is sticking with his prediction.

Copper last moved above $1 during the 6-month period November, 1979-April, 1980, peaking in the $1.40-$1.50 range.