COMMODITY PRICE INDEX

The price of copper on the London Metal Exchange (LME) has topped $2,000 a tonne for the first time in nearly three years. Speculative buying spurred most of the rise, but strong demand and falling stocks may push prices higher still. In 1999 world output of refined copper was in surplus for the fourth year, according to the International Copper Study Group. In the first six months of this year, global consumption outpaced production by 349,000 tonnes. Total refined stocks have fallen by 15% this year—thanks largely to heavy buying by China, the world's second-biggest user—and are now equivalent to little more than four weeks' supply. Stocks on the LME have fallen by half from their peak in March, to 433,000 tonnes. Chinese consumption could rise by nearly 30% this year as its industrial expansion gathers pace.