Big drop for red metal

Copper loses 4% on a weekly basis

Copper prices at Comex sustained its biggest weekly loss in nine weeks on Friday, 17 February 2012 as slack physical demand from China and nervousness in front of a long-awaited bailout deal for Greece weighed on the market.

In New York, the key March Comex contract dropped 8.30 cents, or 2.2%, to settle at $3.7080 per lb, near the bottom of its $3.6935 to $3.8320 session range. Copper lost 4% this week, down for two straight weeks.



London Metal Exchange (LME) benchmark copper fell $125, or 1.5%, to close at $8,175 a tonne.

Copper prices remained depressed most of the day as near-term demand prospects, particularly from China, dimmed. Copper sentiment has taken a hit in recent days from softer demand signals from China, whose near 40% intake of the world's copper demand can easily power or dismantle any market rally.

There were reports that European leaders were moving closer to securing a second bailout for Greece, despite apparent friction between that country and Germany.

Data released Friday from the U.S. Labor Department showed that consumer prices for January rose a seasonally adjusted 0.2%, slightly below expectations of a 0.3% increase, but the biggest increase since September, 2011.