SANTIAGO, March 7 (Xinhua) -- The price of copper struck its highest ever peak Thursday on the London Metal Exchange (LME), surging 5.8 percent over the previous trading day to 4.02 dollars per pound.
The new price beat the previous record set in May 12, 2006, when the copper price stood at 3.98 dollars per pound on the LME.
International copper price has kept increasing rapidly since the beginning of 2008. The range of rise reached 23 percent last month.
Keen demand, dwindling supplies and the weak U.S. dollar were attributed to recent sky-rocketing copper prices, local experts say.
Fast growing global demand has pushed the price hike since the beginning of this year.
Chile's state copper commission Cochilco said dwindling supply was also the cause for the increasing price hike. Stockpiles of copper on the global market, as tracked by the LME, stand 196,000 tonnes currently at their lowest level since October last year.
The continuing devaluation of dollar has also promoted the climbing of copper price, experts say.
The weak dollar and the instability on the international financial market have made such block trading products as copper more attractive as investment instruments, said Carlos.
Amid the recession risk of U.S. economy and high inflation in almost all countries, investment in block trading products as copper has increasingly become a shelter for international capital, he explained.
Analysts believe the copper prices will keep at high levels for a fairly long period as the factors that have caused the price rise will remain.
The current price of about four dollars per pound is not the ceiling, they said. It could hit new highs to 4.1 or 4.2 dollars per pound within the coming months.
However, experts expect that the copper price will eventually be lowered to some extent as copper output will rise by some 850,000 tonnes when new mines are put into operation in major copper-producing countries such as Chile in the second half of this year.