Copper hits $10000 mark

Copper sprinted to a record peak at the key psychological level of R72000 a ton yesterday as investors bet that supply shortages and buoyant demand this year would keep fuelling a rally.

Copper, a benchmark industrial metal used in the power and construction industries, has already surged more than 60% since June, when financial and commodity markets tumbled on fears of sovereign debt default in eurozone countries such as Greece.

"There are worries about copper supplies and the deficit this year," said Barbara Lambrecht, analyst at Commerzbank. "Economic data from the US and China helped sentiment this week."

Benchmark copper on the London Metal Exchange was trading at R72 100 a ton at 10am. It closed at R71600 on Wednesday. Tin also extended its rally to an all-time peak of R222500 a ton.

Copper's rally was strengthened by data from the US Institute for Supply Management on Tuesday, which showed that US manufacturing grew at its fastest pace in nearly seven years in January. The US is the world's largest economy and the second-largest copper consumer after China, which accounts for nearly 40% of estimated global demand of 21million tons this year.

In China, an official index and another, compiled by bankers HSBC, gave different results, but analysts said that, taken together, the two surveys painted a picture of sticky inflation and a moderate slowdown in the world's second-largest economy after 10.3% growth last year.