Copper stocks-EZM, nxg, tgb, nto etc. Here's a newslink from Bloomberg. Interesting comments that China is the world's largest consumer and their usage had dropped the first half of the month while they celebrated their Chinese New Year (Jan 29-Feb13). Also the world's second largest copper mine has had to shut down due to protestors. We could see further strength in copper prices and mining stock prices
>>A shortfall in copper supplies has forced consumers to tap inventory. Stockpiles of copper monitored by the LME dropped for a first day in three, losing 175 tons, or 0.2 percent, to 109,225 tons, the LME said today. That's equal to less than three days of global consumption.
In China, the world's largest copper consumer, stockpiles monitored by the Shanghai Futures Exchange dropped 15 percent to a three-week low of 56,154 tons, the exchange said today. Copper consumption in China typically peaks between February and May as processors increase purchases after the Chinese New Year break to replenish stockpiles.
Mine Stoppage
A stoppage at Freeport McMoran Copper & Gold Inc.'s Grasberg mine, the world's second-largest copper mine, continued for a third day as protestors blocked a road to the mine in Papua, Indonesia. The Indonesian government is sending the military to guard the mine, Energy Minister Purnomo Yusgiantoro told reporters in Jakarta today.
A prolonged disruption at the mine, which produces about 4 percent of the world's copper, may buoy prices. Production losses at the mine in 2003 because of two landslides resulted in global output lagging demand that year. <<
