Copper prices drop the most in a week

Red metal ends its four day winning streak

Copper prices at Comex ended their four day winning streak and dropped for the first time in five days on Tuesday, 11 October 2011. Red metal prices fell the most in a week on concern that metal demand will slide as the global economy falters, Chinese exports wane and Europe's debt woes escalate.

Copper for December delivery ended lower by 8 cents (2.8%) at $3.29 a pound at Comex on Tuesday. In the third quarter, copper tumbled 26%, the most since 2008. The metal touched a 14-month low of $2.994 on 3 October, 2011.



Red metal prices for three-month-delivery at LME fell $155 (2.7%) to $7,290 a metric ton on Tuesday.

US stocks had a choppy trading session on Tuesday. Stocks had a mixed finish with only Nasdaq managing to end in the green. Early traders took most of their cues from Europe, where the region's major bourses moved listlessly after scoring strong gains of their own in recent sessions. Slovakia has attracted attention since political fighting there has kept officials from signing off on the expansion of the EFSF, resulting in some uncertainty over the matter.

Meanwhile, news that the Troika will make another disbursement of financial aid to Greece failed to regenerate buying interest, mostly because the short-term nature of the aid doesn't fully diminish the threat of a default by the country over a longer time span.

In the currency market on Tuesday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, headed up strongly earlier during the day after yesterday's big slump. But, the dollar pared its gains going to the close and ended flat for the day.

Among other traded metals at LME on Tuesday, lead in London rose 0.2% to $1,975 a ton and nickel shed 0.5% to $18,850 a ton. Aluminum closed 0.4% lower at $2,228 a ton, and zinc closed lower by 2.8% at $1,909 a ton.

At the MCX, copper prices for November delivery ended lower by Rs 6.6 (1.8%) at Rs 360.45/Kg. Prices rose to a high of Rs 366.1/Kg and fell to a low of Rs 355.4/Kg.