Copper futures hit a record $3,316 (U.S.) a tonne Monday on concern that demand will outstrip supply in China, the world's largest consumer of the metal.
The rise boosted shares of some Canadian copper producers. Aur Resources Inc. rose 9 cents (Canadian) to $7.47 while Teck Cominco Ltd. gained 5 cents to $45.65. Northern Orion Resources Inc. rose 5 cents to $3.51.
Canada is one of the top five copper producers in the world.
Prices surpassed the previous March record as futures rose in Shanghai, where traders are seeing “very robust domestic demand and tight availability,” Barclays Capital analyst Ingrid Sternby told Reuters. In addition, “speculators there holding a large short position are being forced to cover ahead of the expiry of the April contract on Friday,” she said.
The price of copper, which is used primarily in electronics, construction and electrical applications, has soared nearly 2-1/2 times from a low of $1,364 (U.S.) hit in October 2001, according to Reuters.
More than two-thirds of copper produced is used in wire and cable.
Gold futures, meantime, climbed $2.60 (U.S.) to $431.40, boosting gold stocks. The S&P/TSX's gold sub-index gained 0.6 per cent Monday.
© The Globe and Mail
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