Red metal drops to its lowest level in more than a week

Tight supplies of the metal outside China keep losses in check Copper prices ended lower at LME and Comex on Friday, 04 May 2012. Copper fell to its lowest level in more than a week on Friday after weaker-than-expected US jobs data increased uncertainty about economic growth, but tight supplies of the metal outside China kept losses in check. Copper for May delivery ended lower by 2 cents (0.4%) at $3.72 a pound at Comex on Friday. Copper ended the week 2.7% lower. Red metal prices for three-month-delivery at LME ended lower by $54 (0.7%) to $8,175 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 0.3%. The dollar was weaker earlier during the day. The Labor Department in US reported on Friday that the U.S. economy added 115,000 jobs in April as hiring slacked off for the second straight month. Market had expected a 163,000 increase. The unemployment rate, meanwhile, dipped to 8.1% from 8.2%, as nearly 350,000 people dropped out of the labor force. The report also showed that average workweek was unchanged at 34.5 hours, while average hourly earnings rose 1 cent to $23.38. The increase in employment in March was revised up to 154,000 from an initial reading of 120,000. The gain in February was revised up to 259,000 from 240,000. Latest reports showed that copper stocks in LME-monitored warehouses fell, reaching their lowest since October 2008. Investors were balancing this with supply tightness worries as Chile once again struggled with lower-than-expected copper production and labour action, which heightened risks to supply. A protest took place this week at Chile's giant Escondida copper mine, the world's largest, as a group of contract workers blocked some roads to the deposit in a dispute over bonuses. Uncertainty over the euro zone and wider global economy and the issue of Chinese demand are expected to keep copper prices soft this year. Among other traded metals at LME on Friday, lead in London rose 0.4% at $2,100 a ton and nickel closed higher by 1.7% at $17,575 a ton. Aluminum closed lower by 1% at $2,067 a ton, and zinc closed higher by 0.6% at $1,996 a ton.