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By Leia Michele Toovey- Exclusive to Copper Investing News ^[2]

Copper futures rose Friday after government data showed the U.S. lost much fewer jobs ^[3] last month than expected, fueling hopes for an economic recovery. Copper steadied on Thursday, gaining support from rising equities and a weaker dollar, after the metal plunged just before close on Wednesday. Wednesdays plunge was driven by a recovering dollar and weakening equity markets. The U.S. dollar bounced from its 2009 low against the Euro after central bank sources in Asia said they would keep buying U.S. government debt even if the U.S. credit rating were to be cut.

Copper started the week on a high note, above $5,000 per tonne on the LME, as strong data suggested the global economy has at worst hit the bottom. Providing more support was rising European equities, and a weakening Greenback. Copper on the LME Thursday morning for cash buyer was $4943.87 per tonne.

Copper's revival ^[4], the red metal is up 64 per cent so far this year, has been a result of Chinese stockpiling.  Positive sentiment for the metal is reliant on a continuous stream of strong numbers out of the country.  According to a lead strategist at JP Morgan Securities, Copper demand in China, may post a "strong" recovery in the fourth quarter after traders and smelters run down stockpiles.  Chinese copper demand may rise by between 7 per cent and 8 per cent for the whole year, partly driven by investment in power infrastructure, China's economic growth may accelerate for the rest of the year, growing 9 per cent in the fourth-quarter, as the stimulus plan gathers momentum, Fan Jianping, head of the State Information Center's economic forecast department, said May 11.

Rio Tinto Group, owner of stakes in the world's two biggest copper mines, is not as optimistic of what the year has in store for copper. Bret Clayton chief executive officer of Rio Tinto Copper, said the metal may reverse recent gains in the next nine months because of an "uncertain" outlook. Copper for three-month delivery rose for five months in a row through May on the London Metal Exchange ^[5], surging 57 per cent. Higher prices have "not necessarily been supported" by demand, Mr. Clayton added. "The copper price could go lower in the second half and next year from where it is today," Clayton said. "There is some downside risk to the copper price in the next nine months."

Company News

Inmet Mining Corporation (TSX:IMN) has produced its first copper cathode from its Cobre Las Cruces S.A. hydrometallurgical process plant. Las Cruces resumed mining activities at the bottom of the mine pit on April 29th and delivered the first truck load of ore to the crusher on May 26th. Since then, Las Cruces has introduced the ore through the various stages of the process plant .Jochen Tilk, President and Chief Operating Officer said "We are delighted that Las Cruces has now commenced copper production. This is the result of tremendously hard work by an exceptional team in Spain." Over the coming months, Las Cruces will focus on ramping up production to reach the design capacity of 72,000 tonnes of cathode copper per year.

Grupo Mexico SAB, Mexico's largest mining company, was ordered by a U.S. judge to put into escrow $8.84 billion worth of stock in Southern Copper Corp. while it appeals a Texas court loss. U.S. District Judge Andrew Hanen in Brownsville, Texas, ruled yesterday that Grupo's Americas Mining unit must set aside the stock after losing a lawsuit and being ordered to return 260 million shares of Southern Copper to Asarco LLC along with $1.38 billion in cash. Hanen said in his written ruling that he wouldn't force Grupo Mexico to set aside any cash during its appeal of the lawsuit. Requiring the company to post a bond for such a large amount during the credit crisis would be "an undue burden" on Americas Mining and may harm creditors of Asarco in its bankruptcy case, Hanen wrote.