Copper ends relatively flat at Comex

Copper ends relatively flat at Comex

Base metal prices ended higher at LME on Friday, 09 April 2010. But at Comex, copper prices ended almost flat.

At USA, copper futures for May delivery ended marginally lower at $3.59 a pound on Friday. For the week, prices were almost unchanged. 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 8.5%.

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

On Friday, at LME, copper for delivery in three months ended higher by $35 (0.9%) at $7,965. Prices 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.

In the currency market on Friday, the dollar index, which measures the strength of the dollar against basket of six other currencies fell by almost 0.4%. The dollar index gained about 0.7% in March and rallied 4% during the first quarter. The dollar index has gained 5% this year till date.

Fitch Ratings on Friday downgraded Greece's credit ratings to the lowest ring of investment-grade ratings, BBB minus. A downgrade for Greece heightened concerns about the euro-zone countries and the global economic recovery, thereby affecting commodity prices.

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%.

Among other metals traded in the LME on Friday, lead ended 1% higher at $2,312 a ton and zinc ended 0.9% higher at $2,402 a ton. Nickel ended 1.5% higher at $25,080. Aluminum ended 0.9% higher at $2,378.5 a ton.