Copper May Rebound on Speculation of More Demand, Survey Shows

By Claudia Carpenter

Sept. 5 (Bloomberg) -- Copper may rebound next week on speculation the U.S. economy may come out of the current economic slowdown, reviving demand from wire and pipe manufacturers.

Sixteen of 31 analysts and traders surveyed by Bloomberg News yesterday and Sept. 3 forecast copper will rise. Thirteen expected a decline and two were neutral. Copper for delivery in three months on the London Metal Exchange is down 4.2 percent this week.

The Institute for Supply Management's index of services advanced to 50.6 in August, according to the report yesterday. Readings above 50 signal growth. Economists surveyed by Bloomberg News forecast it would remain at 49.5. U.S. vehicle sales were an annual 13.7 million units in August, Autodata Corp. said Sept. 3. The median estimate in a separate Bloomberg survey was 13 million units.

The U.S. is the second-biggest buyer of copper. China is the largest.

This week's survey results: Bullish: 16 Bearish: 13 Neutral: 2

To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net