Copper ends marginally higher

Copper stays steady for second consecutive day

Copper prices ended marginally higher on Friday, 06 January 2012 at Comex. Prices remained steady as a strong dollar and positive economic data at Wall Street negated each others' effects once again for the second straight day.

Copper for March delivery ended higher by 1 cent (0.3%) at $3.44 a pound at Comex on Friday. Prices lost 0.2% on a weekly basis. For the year 2011, copper shed 23% following a 30% increase in 2010 and a 140% jump in 2009, boosted by surging demand from China's manufacturers. China accounts for 40% of the world's refined copper consumption.



Red metal prices for three-month-delivery at LME rose $88 (1.2%) to $7,627.25 a metric ton on Friday.

In the currency market on Friday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies rose by almost 0.4%. The dollar index rallied to a one-year high on worries over European bank capital, a mixed reception for a French bond auction and better U.S. economic data. For the year 2011, the dollar index had gained 1.6%.

Among economic data expected for the day at Wall Street, the December payrolls report featured a headline unemployment rate of 8.5%, which is down from the 8.6% in the prior month and less than the 8.7% that had been widely anticipated. Moreover, nonfarm payrolls climbed by 200,000, which exceeds the increase of 150,000 that had been expected. Private payrolls increased by 212,000 to exceed the consensus call for an increase of 170,000.

On Friday, the focus of concern from Europe turned to Hungary, whose debt was downgraded to junk status by Fitch Ratings earlier Friday. The downgrade reflected “further deterioration in the country's fiscal and external financing environment and growth outlook.

Among other traded metals at LME on Friday, lead in London fell 0.2% to $2,002 a ton and nickel closed lower by 0.3% at $18,626 a ton. Aluminum closed higher by 0.6% at $2,048.25 a ton, and zinc closed higher by 0.7% at $1,845 a ton.