Copper registers steep drop

Red metal registers good weekly gains though

Copper prices fell the most in a week on Friday, 09 October, 2009 at Comex and LME. Prices fell at Comex and LME following the strong dollar.

At USA, copper futures for December delivery ended lower by 6.05 cents (2.1%) to 2.838 a pound. Copper gained 5.8% for the week. Copper ended September, 2009, lower by 0.3%.

On the London Metal Exchange, copper for delivery in three months ended lower by $95 (1.5%) at $6,235 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

Before September, it was the eight straight monthly gain for copper. On a year to date basis, prices are higher by 91%.

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 Friday, the dollar firmed after Fed Chairman, Ben Bernanke said the central bank will tighten monetary policy when the economic outlook shows sufficient improvement. The dollar index, which measures the strength of dollar against a basket of other currencies, rose by almost 0.3%.

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.

Among other metals traded in the LME on Friday, lead lost 0.5% to $2,273 a ton and zinc slid 1% to end at $2,063 a ton. Nickel shed 1.6% to end at $19,184. Aluminium fell 0.8% to $1,895 a ton.