Copper weakens

Red metal gives up earlier gains

Copper prices pared earlier gains and ended lower at Comex on Wednesday, 10 March 2010. Prices pared earlier gains due to demand concerns.

At USA, copper futures for March delivery ended marginally lower by 4.4 cents (1.5%) at $3.36 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 lower by 0.1% at $7,500. 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%.

Copper advanced earlier after a report that showed China's trade surplus narrowed further in February to $7.6 billion from $14.2 billion in January due to soaring imports, reflecting growing domestic consumption.

In the currency market on Wednesday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, fell by more than 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.

At the MCX, copper for February delivery closed lower by Rs 0.8 (0.2%) at Rs 341.3/Kg. Prices rose to a high of Rs 345/Kg and fell to a low of Rs 335/Kg during the day's trading.

Among other metals traded in the LME on Wednesday, lead ended 0.2% higher at $2,250 a ton and zinc ended 0.5% higher at $2,390 a ton. Nickel ended 0.4% lower at $22,050. Aluminum ended 0.4% lower at $2,201 a ton.