Copper Limbo just how can it go (02.23.98)

Copper Limbo just how can it go (02.23.98) - CopperLimbo:...

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Copper Limbo: Just How Low   Can It Go?   By Aaron Lucchetti February 23, 1998 The Wall Street Journal    A few more pennies may be shaved off the price of copper soon. The closely watched metal has been hovering near 75 cents a pound for about a month, after falling precipitously  during the last half of 1997. But last week at a round of industry meetings, analysts and traders said the next move will likely be further downward.  "The debate has started over how low prices can go," says Robin Bhar, head of research for Brandeis Brokers Ltd. Mr.  Bhar and a handful of other analysts addressed industry executives at an American Metal Market 1998 copper  conference Thursday, a conference ominously titled "Is there any room for optimism?" Since July, the nearby, or most current, copper futures contract on the Comex division of the New York Mercantile  Exchange has fallen nearly 40%, two cents above a 10-year low. Inventories have swelled in Europe and North  America as demand for new projects dried up in East Asia. In Comex trading Friday, the March contract settled at  74.15 cents a pound, down one cent. The sharp move has dramatically altered strategies for producers and consumers. Many are rethinking their purchasing  and sales strategies after years of dealing in a market of tight supplies. Now, analysts say it could take years, not months, for a recovery in copper prices. "A sustained recovery in Asian 
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This note was uploaded on 01/27/2011 for the course ECON 2105 taught by Professor Iacopetta during the Spring '08 term at Georgia Institute of Technology.

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Copper Limbo just how can it go (02.23.98) - CopperLimbo:...

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