Base metals stay steady

Prices end marginally higher as dollar fluctuates

Base metal prices ended almost unchanged at Comex on Monday, 08 March 2010. Prices ended marginally higher as the dollar fluctuated throughout the day.

At USA, copper futures for March delivery ended marginally higher by 0.1 cent at $3.4 a pound. In February, copper ended higher by 7.1%. Copper ended FY 2009 higher by 140%.

At LME, copper for delivery in three months ended higher by 1.1% at $7,628. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

Copper ended substantially higher last year on expectations of revived global economic growth along with a decline in the dollar. The dollar index had dropped almost 4.2% last year. The metal was also pushed higher by record first-half imports to China, the world's largest user.

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 Monday, the dollar had been down roughly 0.4% at its session low earlier in the day but it ended the day with a 0.4% gain. The dollar earlier fell against the euro after French President Nicolas Sarkozy indicated over the weekend that Greece's euro-zone partners stood ready to provide help if needed to avoid a default.

The metal reached a seven-week high earlier last week after an earthquake disrupted mining in Chile, the world's largest producer. The price has climbed 6.3% in three sessions.

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 Monday, lead ended 1.8% higher at $2,270 a ton and zinc ended 1.5% higher at $2,385 a ton. Nickel ended 1.1% higher to end at $22,630. Aluminum ended 0.8% higher at $2,247 a ton.