(08/04) Copper prices climb on global demand expectations

April 08, 2011

Copper prices rose Wednesday on expectations that global demand will remain brisk and supplies will tighten.

Copper prices settled up 2.5 percent, leading most metals higher. Oil rose slightly while other energy and agricultural products were mixed.

The improving global economy is expected to drive more demand this year for copper, which is used in manufacturing an array of products from electronics to construction materials.

While global copper inventories have risen, overall supplies are expected to remain tight, BNP Paribas analyst Stephen Briggs said.
Copper and other commodities benefited from a weaker dollar. Since most commodities are priced in dollars, they become more of a bargain for buyers who use other currencies.

Copper for May delivery rose 10.55 cents to settle at $4.37 a pound. July platinum added $1 to settle at $1,797.80 an ounce while June palladium fell $8.50 to settle at $784.60 an ounce.