Copper ends higher for second straight day

Prices rise on strong demand hopes

Copper prices ended higher for second straight day at Comex on Wednesday, 21 April 2010. Prices rose as overall sentiments improved following better than expected batch of earning reports at Wall Street. Hopes of quick economic recovery boosted prices. But prices dropped at LME.

At USA, copper futures for July delivery ended higher by 2.2 cents (0.6%) at $3.5575 a pound on Wednesday. The contract had shed 3.1% in three sessions before gaining 0.5% yesterday. Last week, prices lost 1.5%. In March, copper gained 7.5%. Copper gained about 6% for the first quarter, buoyed by data from the U.S. and other countries reinforced expectations that the global economic recovery was on track. On a year to date basis, in 2010, copper is higher by 5.2%.

Prices have increased by almost 68% in the past twelve months due to higher imports from China. Copper ended FY 2009 higher by 140%.

On Wednesday, at LME, copper for delivery in three months ended lower by $31 (0.4%) at $7,759. Prices had crossed the $8,000 mark for first time since 2008 last Tuesday, 6 April. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

Among earning reports at Wall Street, Boeing, McDonald's and United Technologies - all bested earnings expectations for the latest quarter. Fellow Dow component AT&T also reported an upside earnings surprise. Apple reported an upside earnings surprise after the prior session's close.

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%.

At the MCX, copper for April delivery closed higher by Rs 1.4 (0.4%) at Rs 345.8/Kg. Prices rose to a high of Rs 346.75/Kg and fell to a low of Rs 341.5/Kg during the day's trading.

Among other metals traded in the LME on Wednesday, lead ended 0.3% lower at $2,314 a ton and zinc ended 0.4% lower at $2,435 a ton. Nickel ended 0.6% lower at $26,750. Aluminum ended 0.2% lower at $2,349 a ton.