Copper rise again

Red metal registers gains following upbeat economic data

Copper prices rose again on Thursday, 15 October, 2009 at Comex and LME. Prices rose following better than expected economic data.

At USA, copper futures for December delivery ended higher by 2 cents (0.3%) to 2.86 a pound. Copper gained 5.8% last week. Copper ended September, 2009, lower by 0.3%.

On the London Metal Exchange, copper for delivery in three months ended higher by $104 (1.7%) at $6,101 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 89%.

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

Among economic reports expected for the day, the Labor Department reported on Thursday, 15 October, 2009 that U.S. consumer prices went higher in September, 2009 in US. The consumer price index rose a seasonally adjusted 0.2% in September. The core CPI, which excludes volatile food and energy prices also increased 0.2% in September on a seasonally adjusted basis. U.S. consumer prices drifted higher in September, led by higher prices for cars, energy and medical care that offset falling rents and home-ownership costs.

In a separate report, The Labor Department reported on Thursday, 15 October, 2009 that the number of people filing for state unemployment benefits fell by 10,000 to a seasonally adjusted 514,000 in the week ending 10 October, 2009. Initial jobless claims have been above 500,000 for 48 straight weeks.

As per the report, it was the fifth decline in the past six weeks and the fewest initial claims since early January. Market was expecting the level of initial claims to fall to about 510,000. The four-week average of new claims dropped by 9,000 to 531,500, also the lowest since January.

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 290.85/Kg. The closing price was Rs 0.85/Kg (0.3%) higher than previous closing price. Prices rose to a high of Rs 292.4/ Kg and fell to a low of Rs 284.4/Kg during the day's trading.

Among other metals traded in the LME on Thursday, lead gained 1.9% to $2,164 a ton and zinc added 1.4% to end at $1,989 a ton. Nickel gained 3.2% to end at $18,250. Aluminium gained 1.6% to $1,873 a ton.