Red metal tarnishes

Prices gain 0.5% on a weekly basis

Copper prices slipped on Friday, 16 March 2012 at Comex backing off the highest level in more than two weeks after mixed economic data in the United States and a third consecutive weekly build in Shanghai inventories eroded early bullish sentiment. Investors also kept weighing an improving global economy against more signs of sluggish demand in China, which accounts for nearly 40% of copper consumption.

London Metal Exchange (LME) three-months copper fell $55 to end at $8,510 a tonne, reversing from an earlier session peak at $8,690.



At New York, the May COMEX contract finished down 1.95 cents (0.5%) at $3.8780 per lb, after dealing in a session range between $3.8675 and $3.94. Prices were up 0.5% from a week ago.

Ahead of the opening bell, the Labor Department reported that consumer prices rose less than expected last month, rising 0.4% versus expectations of a 0.5% increase. Core prices that remove volatile food and energy costs rose 0.1% versus expectations of a 0.2% uptick.

Other economic reports Friday had the Federal Reserve reporting the output of U.S. factories, mines and utilities held flat in February, while January production was revised to a 0.4% increase from an initial estimate of unchanged.

Consumer sentiment dipped to 74.3 in a preliminary reading for March from a final level of 75.3 for February, according to data on Friday from the University of Michigan and Thomson Reuters. Market had expected a March reading of 76.5.

The dollar index, which weighs the strength of the dollar against a basket of six other currencies fell by almost 0.4%.

As per latest reports, LME stocks fell every day since mid February to 267,750 tonnes by 14 March, the lowest since June 2009.