Copper ends higher

Prices rise as global stocks rise

Copper prices rose at Comex and LME on Thursday, 03 September, 2009. Prices rose today as global equity markets fueled optimism that demand for industrial metals will rise.

At USA, copper futures for December delivery rose 3.9 cents (1.4%) to 2.865 a pound. The metal fluctuated between gains and losses earlier today, reflecting swings in U.S. equities. Copper fell as much as 1.5% earlier. Last week, copper ended higher by 2%. Copper ended August, 2009, higher by 7%.

On the London Metal Exchange, copper for delivery in three months ended higher by $81 (1.3%) at $6,255 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

After August, it was the eighth straight monthly gain for copper. Prices gained 23% in the second quarter. On a year to date basis, prices are higher by 90.7%.

The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.

In the currency market on Thursday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended slid by 0.7%. The dollar moved lower against the euro and the British pound but remained higher against the Japanese yen.

Among economic reports expected on Thursday, The Labor Department reported on Thursday, 03 September, 2009 that the number of people filing for state unemployment benefits for the first time fell by 4,000 to a seasonally adjusted 570,000 last week.

Initial claims have held in a fairly narrow range for the past seven weeks, down about 100,000 from the peak in March but still well above levels seen in a healthy economy.

As per latest reports, stockpiles of the metal monitored by the London Metal Exchange have jumped 18% since mid-July to 302,950 metric tons.

In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.

At the MCX, copper for November delivery closed at Rs 310.1/Kg. The closing price was Rs 4.8/Kg (1.6%) higher than previous closing price. Prices rose to a high of Rs 310.8/ Kg and fell to a low of Rs 304.25/Kg during the day's trading.

Among other metals traded in the LME on Thursday, lead rose 7.8% to $2,280 a ton and zinc gained 0.5% to end at $1,838 a ton. Nickel rose 1.1% to end at $18,300. Aluminium rose 0.5% at $1,856 a ton.