Weak day for base metals

Chinese data and strong dollar tarnish prices

Red metal price dropped at Comex on Friday, 10 June 2011. Prices dropped in tandem with other commodities on Friday. Strong dollar and weak trade data from China hampered prices.

Copper for July delivery ended lower by 5 cents (1.3%) to end at $4.06 a pound at Comex on Friday. For the week, the red metal lost 1.7%. Copper had ended flat for the month of May.

On Friday, three-month-delivery copper on the London Metal Exchange ended lower by $58 (0.7%) at $8,988 a metric ton.

Copper prices ended the first quarter down 3.1%. For the year till date, copper prices are almost unchanged.

In the currency market on Friday, the dollar index saw a strong gain finishing up close to 0.9% near 74.80. The euro closed just above its worst levels near 1.4340 after a differing of opinions between European Central Bank President Jean Claude Trichet and German Finance Minister Wolfgang Schauble regarding the new Greece rescue package weighed on the single currency.

The Chinese data showed on Friday that the country's May trade surplus widened to $13.05 billion in May, up from $11.4 billion recorded in April but well below a forecast of $18.6 billion expected. The data showed May exports up 19.4% from a year earlier, the pace marked a sharp easing from a 29.9% rise in April, and was below a forecast of 20.4%.

Data also showed that China imported 254,738 tons of copper and copper products in May, 3% less than the 262,676 tons in April 2011. The May imports were 36% below the 396,712 tons in the year-ago month.

Among other traded metals at LME on Friday, Aluminum for three-month delivery on the LME fell 0.3% to $2,651 a ton and nickel dropped 0.7% to $23,042 a ton. Zinc was unchanged $2,285 a ton and lead dropped 1% to $2,584 a ton.