Copper ends higher

Prices rise as global stocks rise

Copper prices rose at Comex and LME on Thursday, 03 September, 2009. Prices rose today as global equity markets fueled optimism that demand for industrial metals will rise.

At USA, copper futures for December delivery rose 3.9 cents (1.4%) to 2.865 a pound. The metal fluctuated between gains and losses earlier today, reflecting swings in U.S. equities. Copper fell as much as 1.5% earlier. Last week, copper ended higher by 2%. Copper ended August, 2009, higher by 7%.

On the London Metal Exchange, copper for delivery in three months ended higher by $81 (1.3%) at $6,255 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

After August, it was the eighth straight monthly gain for copper. Prices gained 23% in the second quarter. On a year to date basis, prices are higher by 90.7%.

The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.

In the currency market on Thursday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended slid by 0.7%. The dollar moved lower against the euro and the British pound but remained higher against the Japanese yen.

Among economic reports expected on Thursday, The Labor Department reported on Thursday, 03 September, 2009 that the number of people filing for state unemployment benefits for the first time fell by 4,000 to a seasonally adjusted 570,000 last week.

Initial claims have held in a fairly narrow range for the past seven weeks, down about 100,000 from the peak in March but still well above levels seen in a healthy economy.

As per latest reports, stockpiles of the metal monitored by the London Metal Exchange have jumped 18% since mid-July to 302,950 metric tons.

In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.

At the MCX, copper for November delivery closed at Rs 310.1/Kg. The closing price was Rs 4.8/Kg (1.6%) higher than previous closing price. Prices rose to a high of Rs 310.8/ Kg and fell to a low of Rs 304.25/Kg during the day's trading.

Among other metals traded in the LME on Thursday, lead rose 7.8% to $2,280 a ton and zinc gained 0.5% to end at $1,838 a ton. Nickel rose 1.1% to end at $18,300. Aluminium rose 0.5% at $1,856 a ton.

Copper ends marginally highe

Prices rise at Comex but drop at LME

Copper prices continued to fall at Comex and LME on Wednesday, 02 September, 2009. But at the end, prices registered marginal gains at Comex. Prices dropped today due to rising LME inventories.

At USA, copper futures for December delivery rose 0.75 cents (0.3%) to 2.826 a pound. Last week, copper ended higher by 2%. Copper ended August, 2009, higher by 7%.

On the London Metal Exchange, copper for delivery in three months ended lower by $26 (0.4%) at $6,174 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

After August, it was the eighth straight monthly gain for copper. Prices gained 23% in the second quarter. On a year to date basis, prices are higher by 89.3%.

The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.

In the currency market on Wednesday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended slid by 0.5%.

Among economic reports expected on Wednesday, a private sector payrolls report indicated that employment in the U.S. private sector fell by 298,000 in August.

As per latest reports, stockpiles of the metal monitored by the London Metal Exchange have jumped 18% since mid-July to 302,950 metric tons.

In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.

At the MCX, copper for November delivery closed at Rs 305.3/Kg. The closing price was Rs 0.15/Kg (0.04%) lower than previous closing price. Prices rose to a high of Rs 306.85/ Kg and fell to a low of Rs 298/Kg during the day's trading.

Among other metals traded in the LME on Wednesday, lead rose 1% to $2,080 a ton and zinc fell 0.5% to end at $1,815 a ton. Nickel fell 3.2% to end at $17,663. Aluminium ended unchanged at $1,881 a ton.

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Copper tumbles in Shanghai

Copper prices took another tumble on Monday, with most Shanghai futures contracts falling by their daily downside limits as investors fretted over rising inventories, despite an otherwise robust market outlook.

Shanghai copper futures <0#SCF:> fell by their 4-percent daily limit at the opening and failed to recover as a plunge in London Metal Exchange three-month copper to four-month lows on Friday turned buyers away.

"Copper's starting the week the way it ended last week, in negative territory," a metals trader said.

Most Shanghai copper futures closed limit-down, with the most-active January contract <0#SCF:> dropping to 65,060 yuan ($8,277) a tonne, against 67,450 yuan at last Friday's close.

A weaker U.S. dollar did little to spark interest in London Metal Exchange contracts, with copper for delivery in three months on the LME quoted at $6,850 a tonne.

The contract fell $410, or 5.6 percent to $6,900 in London on Friday after LME stocks leapt 1,625 tonnes to 148,200, up 54 percent from the start of the year.

"Fundamentals for copper still look strong, but the stocks can't be ignored," a second trader said.

China's strong appetite for copper to feed industrial growth has long fuelled copper prices.

Expectations that this trend will continue were underscored by news last week that copper smelters might continue to chase limited supplies of concentrate next year.

Chile's giant Escondida mine, majority owned by BHP Billiton Ltd/Plc , has opened 2007 copper treatment and refining charge talks with Chinese smelters with an offer a third lower than charges for 2006.

"That tells us that at least BHP thinks smelters are desperate for concentrate," the second trader said.

High copper prices, which hit a record $8,800 a tonne in May, had kept China off the world copper market for months. Imports of copper, including semi-finished products, fell 22.4 percent between January and October as it relied on its own stockpiles.

But with copper prices slumping and domestic stockpiles diminished somewhat, some analysts think China may turn buyer.

"There is no visible oversupply in China's copper market. A strong price rise may appear if buying interests of consumers and investors are prompted by a might-be shortage in domestic physical market," Xue Feng, an analyst at Maike Enterprise Group said in a market note.

Three-month nickel, which zoomed to a record $32,625 on Oct. 20, was up $100 at $29,500 a tonne.

Australia's Western Areas NL ,WSA.TO> on Monday joined a growing legion of outback miners looking to increase output in response to nickel's surge.

The miner said it wanted to lift output of nickel in concentrate by 5,000 tonnes a year from 12,000 tonnes at its Flying Fox mine as it sees a strong nickel price going forward.

Nickel miners in the far western Australia outback, including Australian Mines Ltd. , Mincor Resources NL , Fox Resources Ltd. and Jubilee Mines NL are making plans to dig more nickel on expectations that demand for the metal will stay strong.

Metal Last Net Change Pct Move LME Cu 6910.00 10.00 +0.14 SHFE Cu* 65060.00 -2390.00 -3.54 LME Alum 2705.00 10.00 +0.37 SHFE Alu* 20110.00 -390.00 -1.90 COMEX Cu** 307.75 0.00 +0.00 LME Zinc 4335.00 35.00 +0.81 LME Nickel 29500.00 100.00 +0.34 LME Lead 1675.00 0.00 +0.00 LME Tin 9750.00 -100.00 -1.02

Change so far in 2006

Metal Latest bid End prev year Pct Move LME Cu 6910.00 4395.00 +57.22 SHFE Cu* 65060.00 41720.00 +55.94 LME Alum 2705.00 2276.00 +18.85 SHFE Alu* 20110.00 19360.00 +3.87 COMEX Cu** 307.75 204.20 +50.71 LME Zinc 4335.00 1905.00 +127.56 LME Nickel 29500.00 13500.00 +118.52 LME Lead 1675.00 1051.00 +59.37 LME Tin 9750.00 6475.00 +50.58