LONDON, Feb 3, 2011 – Copper prices surged to a record peak at $10,000 per tonne on Thursday, hitting the key barrier on the back of growing economic optimism and bullish manufacturing data, traders said.
In trade on the London Metal Exchange, copper for delivery in three months\’ time hit exactly 10,000 dollars per tonne, before pulling back slightly.
"The final push was fuelled by global recovery optimism in general and Tuesday\’s bullish manufacturing PMI releases in particular," said SEB commodities analyst Filip Petersson.
"These indicated that the OECD recovery is accelerating while the Chinese economy remains stable.
"Thus, an OECD copper demand recovery from very low levels in combination with continued Chinese demand strength looks like the most likely scenario going forward."
Copper prices are also being propelled by tight global supplies of the industrial metal, which is used in plumbing, heating, electrical and telecommunications wiring.
"Commodity prices remain in an uptrend at the moment given resilient economic growth from the world\’s leading commodity demander China," added VTB Capital economist Neil MacKinnon.
"In addition, the global economy started 2011 on a robust note according to the latest surveys of manufacturing for the US and German economies."