Copper maintains its ongoing momentum

Prices rise for the ninth time in ten years

Copper prices struck record highs at LME and Comex on Friday, 31 December 2010 at Comex. Supply disruptions in Chile, the world's largest producer, helped to support prices, along with increased investor demand. Drop in global inventories of copper has also pushed copper prices higher this year.



At USA, copper futures for December delivery ended higher by 8 cents (1.9%) at $4.447 a pound on Friday. It was an all time record high price for copper. The price climbed 4.4% this week, the fifth straight gain. The metal is up 16% in December and 22% in the fourth quarter. For the year, copper gained 33%. It was the ninth rise for the red metal in ten years.

On Friday, at LME, copper for delivery in three months ended higher by $105 (1.1%) at $9,600. It touched a high of $9,667 earlier in the day. Copper ended FY 2009 higher by 140%.

In the currency market on Friday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, slipped by 0.5%. The dollar index gained 1.5% for the year.

Latest data show that inventories at LME have dropped by 19% this year.

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.

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 0.3% higher 2,561 a ton and zinc ended 0.2% higher at $2,454 a ton. Nickel gained 0.2% at $24,350 Aluminum was up 0.3% at $2,481 a ton.