Copper demand vanishes as users look to ’08
Dec 06, 2007 | 09:24 AM
| Sean Barry
Demand for copper cathode in the United States has dried up as consumers run down inventory for year-end accounting purposes and concerns deepen over the impact of the housing sales collapse and credit crunch on the wider economy.
Business activity on the spot market has all but disappeared and trade sources said they remain bearish on the prospects of the market rebounding in the early part of next year as the housing slowdown shows no signs of easing.
"It's been a very slow end to the year and most people are just trying to consolidate their positions. Consumers are trying to keep inventory to a minimum for the year-end and orders in the fourth quarter remain well off last year because of the effects of the housing slowdown," one physical copper trader said. "I think the Fed (U.S. Federal Reserve) will continue to hold interest rates low in order to limit the effects of the housing crash and hopefully keep the economy from slipping into recession."....
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