Copper rises again

Prices gain more than 6% in November

Copper prices rose at Comex and LME on Monday, 30 November, 2009. Prices rose as the debt concerns in Dubai eased a bit over the weekend. This led the dollar falter today.

At USA, copper futures for March delivery ended higher by 5.5 cents (1.8%) to 3.1485 a pound. Copper ended November 2009 higher by 6.6%. On a year to date basis, copper has climbed 123%.

On the London Metal Exchange, copper for delivery in three months ended higher by $72 (1.1%) at $6,918 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

In the currency market on Monday, the dollar weakened as concerns eased over Dubai's debt problem, and as upbeat economic data in the Chicago region reduced investors' appetite for the greenback. The dollar index, which measures the strength of dollar against a basket of six other currencies, fell by almost 0.6% today.

Worries over Dubai's debt crisis eased Monday after the central bank of the United Arab Emirates said during the weekend that it will make available a special liquidity facility for banks of the city state. Dubai World, the largest corporate entity in the Persian Gulf emirate, asked creditors last Wednesday for a six-month stay on repayment of $60 billion in debts.

In economic news, as per the Chicago purchasing managers index released on Monday by the Institute for Supply Management of Chicago, more businesses in the Chicago region were expanding in November than at any time in the past 15 months.

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

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 February delivery closed at Rs 320.75/Kg. The closing price was Rs 0.7/Kg (0.21%) lower than previous closing price. Prices rose to a high of Rs 322/ Kg and fell to a low of Rs 313.1/Kg during the day's trading.

Among other metals traded in the LME on Monday, lead added 0.4% to $2,310 a ton and zinc added 0.5% to end at $2,250 a ton. Nickel rose 0.6% to end at $16,185. Aluminium was little changed at $2,015 a ton.