Copper stays strong

Prices rise at both Comex and LME

Red metal prices rose at Comex on Monday, 24 May 2010. Prices rose today as traders thought that last week's selling of commodities leading to lower prices was overdone.

At USA, copper futures for July delivery ended higher by 9 cents (2.8%) at $3.1410 a pound on Monday. In April, copper lost 6.1%. 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 lower by 2.7%.

On Monday, at LME, copper for delivery in three months ended higher by $123 (0.8%) at $6,855. Prices had crossed the $8,000 mark for first time since 2008 on 6 April. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

Prices have increased by almost 51% in the past twelve months due to higher imports from China. Copper ended FY 2009 higher by 140%.

In the currency market on Monday, the dollar index, which measures the strength of the dollar against a basket of six other currencies rose by 0.9%.

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

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.

At the MCX, copper for June delivery closed higher by Rs 2.15 (0.7%) at Rs 324.3/Kg. Prices rose to a high of Rs 325.3/Kg and fell to a low of Rs 319.2/Kg during the day's trading.

Among other metals traded in the LME on Monday, lead ended 0.3% higher at $1,765 a ton and zinc ended 0.8% higher at $1,925 a ton. Nickel ended 0.3% lower at $21,000. Aluminum ended 0.3% higher at $1,998 a ton.