Copper edges closer to $10,000 mark

bealtine

Copper prices hit a new record in Europe this morning.

http://www.rte.ie/news/2010/1231/copper-business.html

Copper prices hit a new record in Europe this morning as rock solid demand and supply prospects for the year ahead combined with a weaker dollar.

Benchmark copper on the London Metal Exchange climbed to $9,639 a tonne from a close of $9,490 on Thursday.

The metal used in power and construction earlier reached a new record high of $9,645. Prices are poised to hit five figures early next year and are set to close 2010 up around 30%.

The global market for refined copper is expected to move into a supply deficit next year of 400,000 tonnes due to declining ore grades in Chile, the world's top producer, and a lack of large new projects.

The metal was also lifted by a weaker dollar, which makes commodities less expensive for holders of other currencies.

bealtine

Looks to me as the days of copper as a medium for telephone wiring and cable are coming to an end and that fibre will be a cheaper alternative all round in the future. Now if only the telcos would stop rolling out copper infrastructure

Galen

Fingers crossed that 2011 will be the year that the telcos finally get the message that it's time to say goodbye to copper and hello to fibre.