NEW YORK New
home construction permits were up 20.8 percent last month
compared with a year earlier, but sources say it is not a
strong enough recovery from the recession years.
New housing permits
were issued at an annual rate of 974,000 in May, up from
806,000 a year ago but still well below the annual rate of more
than 1.49 million permits in May 2007 and nearly 1.91 million
in May 2006, according to U.S. Census Bureau data.
Copper consumers told
AMM that while the increase in new permits is a good
sign, the numbers are not enough to have a major effect on the
copper industry. "You have to remember, while its up it
was so low (during the recession). Until its up 30 to 40
percent you wont see a dramatic effect," one consumer
"We havent hit
peak levels yet. Its climbing, but were still not
where we were in 2006 or 2007," INTL FC Stone LLC analyst
Edward Meir said.
Others claimed that the effects of a recent boom in
construction are delayed. "Were hopeful that at some
point down the road the ripple effect (of new construction)
should trickle down to us," a second copper consumer source