Copper stays steady

Copper rises more than 3% for the week

Copper prices ended mildly lower at Comex on Friday, 18 March 2011. Prices dropped as Libyan crisis continued and on fears that recovery in Japan will take some time before demand picks up again.



Copper for May delivery lost 1 cent (0.2%) to end at $4.34 a pound at Comex on Thursday. For the week, copper gained 3.1%.

Three-month-delivery copper on the London Metal Exchange ended higher by $28 (0.3%) at $9,593 a metric ton.

For the month of February 2011, copper prices gained 1.3%. Before this, in January, copper prices finished flat.

It is estimated that factory shutdowns, power cuts and the impact on consumer confidence may hurt Japan's GDP for months, while contributing to growth later as the country rebuilds plants, homes and infrastructure. Metals used in Japan, which represents about 5% of global demand, will probably jump after an initial slump as the country rebuilds infrastructure. Reconstruction and refurbishing of damaged plants, buildings and infrastructure should lead to greater commodity consumption, particularly building materials.

A devastating earthquake coupled with a Tsunami rocked Northern Japan last weekend. Fears that the nuclear reactors, damaged by the quake, are at risk of a meltdown added to the country's woes.

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

Base metals also stayed steady as the U.N.'s Security Council adopted a resolution to impose a ban on all flights in Libya's airspace and authorize “all necessary measures” to protect civilians under threat of attack in the country, including in the rebel-controlled city of Benghazi. News that Libya's Foreign Minister announced intentions for an immediate ceasefire following the UN's decision to implement a no-fly zone over the country was also met with a positive response.

Among other traded metals at LME, lead in London rose 1.1% to $2,680 a ton and nickel gained 1.4% to $26,300 a ton. Aluminum rose 0.7% to end at $2,541 a ton, and zinc climbed 0.5% to end at $2,345 a ton.