| Copper Futures Rise to Record in Shanghai as Faster Growth Boosts Demand April 17 (Bloomberg) -- Copper futures in Shanghai rose to a record for a third session after China's President Hu Jintao said the nation's economic growth accelerated to 10.2 percent in the first quarter, boosting prospects for metals consumption. The figure, given by Hu in Beijing yesterday, is higher than every forecast in a Bloomberg News survey of 25 economists and compares with 9.9 percent growth in the fourth quarter. The Bloomberg survey had a median estimate of 9.6 percent. ``Hu's comments that China's economy accelerated is a surprise and very encouraging,'' said Shen Haihua, vice president with Maike Futures Co. ``Strong cash prices indicate tight supply. I don't see any slowdown in copper consumption.'' Copper prices in Shanghai have increased 82 percent in the past year on demand for the metal in homes, cars and appliances. Metal for delivery in July rose as much as 2,110 yuan, or 3.7 percent, to a record 59,030 yuan ($7,365) a ton on the Shanghai Futures Exchange. Demand for cables and wires in China, the biggest consumer of copper, will rise to 3.35 million tons by 2010 from an expected 2.45 million tons in 2006, He Shisi, an official at the China Electrical Equipment Industry Association, said on April 14. Installation of power grids in the rural areas and power construction will boost demand for copper, He said. Power plants in China, the biggest electricity user after the U.S., are increasing capacity to supply the expanding economy. Chinese power generators may add 72,000 megawatts of new capacity this year, the National Development and Reform Commission, China's top planner, said in March. Copper Demand Chinese copper demand may increase 8 percent to 3.9 million tons this year, exceeding production by 1.05 million tons, according to the government-affiliated China Nonferrous Metals Industry Association. Metal for May delivery rose as much as 11.95 cents, or 4.2 percent, to $2.9350 a pound on the Comex division of the New York Mercantile Exchange. The contract traded at $2.8950 a pound at 10:27 a.m. Shanghai time. To contact the reporter for this story:Helen Yuan in Shanghai at hyuan@bloomberg.net Last Updated: April 16, 2006 22:40 EDT |
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