The Copper thread

[drbubb]

Zambia's biggest copper mine suspends production due to pollution

 

 

Zambia's biggest copper mine company, Konkola Copper Mines (KCM) has suspended production of copper at its Nchanga plant following the closure of its Tailings Leach Plant in Northwestern province.

 

The closure of the plant comes after a directive for the mining company to close its leach plant, which developed a leak leading to poisonous silt contaminating water supplies in the area.

 

KCM Spokesperson Sam Equamo said Saturday the company had headed the directive from the Mine Safety Department and the Environment Council of Zambia.

 

He said as a result of the closure of the Tailings Leach Plant the Nchanga concentrator has had to stop operations since it is unable to pump tailings to the Tailings Leach Plant.

 

The closure has resulted in losses of up to 352 tons of finished copper a day representing about 10 billion kwacha (2.56 million U.S. dollars).

 

KCM, jointly owned by the Zambian government and Indian mining firm Vedanta resources, which has a majority stake and is managing the mines, halted operations to facilitate maintenance.

 

Three people have been admitted to hospital after they ate food made of the contaminated water.

 

A disaster management unit of the government has dispatched tankers to provide clean water to the residents.

 

Source: Xinhua: http://english.people.com.cn/200611/12/eng...112_320623.html

[No6]

Copper falls on Speculation U.S. Demand to Decline.

 

In October, construction spending fell by the most in five years, led by a plunge in home building. Builders are the biggest users of copper, with the average U.S. home containing about 400 pounds of the metal, according to data from the Copper Development Association.

 

`Lower Spending'

 

``Lower and lower spending in the construction industry will mean lower use of copper,'' Chidley said.

 

The metal will average $2.49 a pound this year, he said. That's 19 percent lower than the average $3.0572 a pound in 2006.

 

``We have a lot of people sitting on the fence, waiting to place orders,'' said Charles Molnar, owner of Molnar Tools Inc. in Ocean, New Jersey. ``They are waiting for prices to come down.'' Molnar uses about 200,000 pounds of copper a year.

 

Rising global inventories are additional signs of weakening demand, Chidley said. Stockpiles monitored by warehouses in London, Shanghai and New York are at the highest levels since June 2004, Bloomberg data shows.

 

Chile's state-owned Codelco, the world's biggest copper producer, said yesterday that there is a surplus of the metal and increased its production forecast for this year.

 

Copper futures have still gained more than fourfold in the past five years on demand from China, the largest consumer of the metal. Mining companies such as Codelco, and BHP Billiton Ltd. have ramped up production to take advantage of higher prices.

 

On the London Metal Exchange, copper for delivery in three months fell $180, or 2.95 percent, to $5,930 a metric ton. The metal fell below $6,000 for the first time in more than eight months.

 

http://www.bloomberg.com/apps/news?pid=206...&refer=home

[drbubb]

Does the US matter any more?

 

I think demand in other countries will come to drive copper back up,

albeit from lower levels

[No6]

Does the US matter any more?

 

I think demand in other countries will come to drive copper back up,

albeit from lower levels

Well, I suppose it only matters as long as the market thinks so?

 

According to one market report it's down a further 3% today marking a 10% decline on the year so far. 10% and it's only Jan 4th! Do we have a chart on copper?

[No6]

Here's a little chart with big falls.

 

 

Is it bottoming out? This article is largely bearish about the metals, but the last paragraph about China running down stockpiles must mean that soon they will be out buying again.

 

The other major metals, including aluminium, zinc, lead and nickel, have been largely insulated from serious price falls, but this may be about to change. Where copper leads, generally the other metals follow.

 

Nick Moore, analyst at ABN Amro, said: “Copper was in the vanguard leading prices up at the start of the boom and, as the flagship metal, it is likely to lead the others lower in the future.”

 

While this is bad news for mining companies, large industrial consumers will be breathing a sigh of relief. They have been battered by high raw material prices that have eaten into margins.

 

There are a number of factors contributing to copper’s decline. The first is concern about the state of the global economy and in particular weakness in the American housing and car markets, which are large consumers of copper.

 

China, which accounts for 22 per cent of global demand for copper, is another factor. The fast-growing country is sourcing more copper from within its own borders and has been running down stockpiles.

 

http://www.timesonline.co.uk/newspaper/0,,...2536024,00.html

[drbubb]

maybe those reports of copper manipulation were true.

 

if so, looks like the manipulation is falling apart, and $5,000 per tonne is coming soon

 

i think we will see that first, before it "bottoms out".

in fact, that chart is entitled wrong- it is sliding, not bottoming out.

[frizzers]

I fear the gold chart may look like that soon.

[Bubble Pricker]

Frizz, I think you are too bearish on gold. The recent lows may well be the bottom, but of course one never knows.

[drbubb]

(from today's SCMP):

 

China Copper demand Grows 15pc - higher than expected

 

Apparent consumption of refined coper grew 15.4 percent,

despite imports falling 32.3%, as domestic smelters produced more copper

 

Copper demand outpaced China's economic growth, which rose 10.7%- fastest in 11 years

 

China produced 2.93 mn tonnes- 17.8% more refined copper in 2006

 

Consumption was 3.54 mn tonnes

 

Imports dropped to 827,021 tonnes - 32.3%

[AceofKY]

Copper price is falling again. Warehouse stocks are rising.

We've seen this movie before, haven't we?

 

While everyone is talking about gold, let's resurrect this thread and find some good copper stocks to buy when the metal bottoms.

[AceofKY]

Copper price is falling again. Warehouse stocks are rising.

We've seen this movie before, haven't we?

 

While everyone is talking about gold, let's resurrect this thread and find some good copper stocks to buy when the metal bottoms.

 

Should've put my money where my mouth was; I got some Lundin call options (up 63%) but it was a very small position for me, so I've missed the latest run in copper stocks.

 

Is there such a thing as a quintuple top?