Copper weakens

Prices register weekly losses for first time in four weeks

Copper prices registered weekly losses for the first time in four weeks on Friday, 10 September at Comex. Prices dropped on reports that Chinese regulators are investigating positions in rubber
futures that spurred speculation that some traders may be forced to sell commodities.



At USA, copper futures for September delivery ended lower by 4 cents (1.1%) at $3.41 a pound on Friday. For the week, price fell by 2.7%. For the month of August, copper ended higher by 1.8%. July, copper had ended higher by 12% as concerns about a slowdown in the global recovery abated, pushing the red metal to its best month since April 2009.

On Friday, at LME, copper for delivery in three months ended lower by $75 (1%) at $7,480. Prices had crossed the $8,000 mark for first time since 2008 on 6 April 2010. On 3 July, 2008, prices had touched an all time intra day high of $8,940. Copper ended FY 2009 higher by 140%.

Before this, for second quarter, copper dropped 16%. 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.

As per latest report, China's copper and products imports climbed for the second month in August, expanding 11% to 379,527 tons from 342,901 tons in July, on expectations of a seasonal increase in demand. Imports of scrap copper climbed to 400,000 tons in August from 380,000 tons.

The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%. Copper fell for three months in a row through June on concern about efforts to curb growth in China, the world's biggest user of the metal.

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.

Among other metals traded in the LME on Friday, lead ended 0.7% lower at $2,185 a ton and zinc ended 0.01% lower at $2,154 a ton. Nickel was unchanged at $22,750. Aluminum ended 1% higher at $2,125 a ton.