Copper ends marginally highe

Prices rise at Comex but drop at LME

Copper prices continued to fall at Comex and LME on Wednesday, 02 September, 2009. But at the end, prices registered marginal gains at Comex. Prices dropped today due to rising LME inventories.

At USA, copper futures for December delivery rose 0.75 cents (0.3%) to 2.826 a pound. 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 lower by $26 (0.4%) at $6,174 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 89.3%.

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 Wednesday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended slid by 0.5%.

Among economic reports expected on Wednesday, a private sector payrolls report indicated that employment in the U.S. private sector fell by 298,000 in August.

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 305.3/Kg. The closing price was Rs 0.15/Kg (0.04%) lower than previous closing price. Prices rose to a high of Rs 306.85/ Kg and fell to a low of Rs 298/Kg during the day's trading.

Among other metals traded in the LME on Wednesday, lead rose 1% to $2,080 a ton and zinc fell 0.5% to end at $1,815 a ton. Nickel fell 3.2% to end at $17,663. Aluminium ended unchanged at $1,881 a ton.