Record high for copper at New York

Shipment halt at Collahuasi and Chinese trade data lift prices

Copper prices touched record highs on Tuesday, 21 December 2010 at Comex. Shipment halt at Collahuasi and Chinese trade data on Tuesday lifted prices to all time high.



At USA, copper futures for December delivery ended higher by 7 cents (1.7%) at $4.276 a pound on Tuesday. Earlier during the day, prices touched a high of $4.29. It was an all time high registered by a front month contract as reported by the exchange. Year to date, copper price is higher by 26%.

On Tuesday, at LME, copper for delivery in three months ended higher by $75 (0.8%) at $9,247. It was a thirty-one month high price for copper. Copper ended FY 2009 higher by 140%.

Copper prices are up sharply this year, driven mostly by strong demand in China, the world's biggest copper consumer, and a gradual recovery in manufacturing and construction industries elsewhere. In the face of ever tighter supply constraints, many analysts predict copper prices will continue to rise well into 2011.

As per latest reports, port facilities for the Collahuasi mine, mostly owned by Anglo American PLC and Xstrata PLC , halted exports of copper concentrate after an accident reportedly killed three workers and prompted the mine operators to declare force majeure.

Latest trade data from China showed on Tuesday that refined-copper imports by China, the world's largest consumer, increased for the first time in three months as some traders bet the bull market will continue and others shipped in the metal for trade financing purposes. November imports were 232,298 metric tons, as per the General Administration of Customs. That's 37% higher than 169,897 tons in October.

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 Tuesday, lead ended 0.4% lower at $2,465 a ton and zinc ended 0.1% lower at $2,311.5 a ton. Nickel gained 0.5% at $24,650. Aluminum was almost unchanged at $2,395 a ton.

At the MCX, copper prices for February delivery ended higher by Rs 5.8 (1.4%) at Rs 428.4/Kg. Prices rose to a high of Rs 428.95/Kg and fell to a low of Rs 422.1/Kg.