(30/12) Copper, gold break records

December 30, 2010

Copper and gold have hit fresh records, but trade volumes are extremely thin due to the holiday season, exaggerating price movements.

Analyst James Moore of FastMarkets noted in a research report on Wednesday that both base metals and precious metals have rallied strongly as trade resumes on the London Metals Exchange (LME), which opened today after the holidays.

However, the outlook for both base and precious metals looks upbeat for the moment with gold and silver poised for technical upside break-outs, he said.

Analysts expect copper prices to surge above $11 000/ton in 2011, driven by a tightening market with demanding outpacing supply and stockpiles dropping to as low as a week's supply.

With copper demand expected to outpace supply by more than 350 000 tons in 2011, most traders and analysts are extremely bullish about the red metal and its 2011 prospects with one major firm even sticking its neck out to forecast an average price of $11 250/ton for the year.

(30/12) Chilean Climbs to Two-Year High on Record Prices for Copper

December 30, 2010

Chile’s peso rose to the highest level in more than two years as prices for copper, the South American country’s main export, surged to a record in London trading.

The peso gained 0.2 percent to 468.95 per U.S. dollar and earlier touched 467.46 per dollar, the strongest level since May 2008.

Copper advanced as much as 1.1 percent to $9,447 a metric ton on the London Metal Exchange. The metal, which accounted for 57 percent of Chile’s export last quarter, reached a record in New York yesterday after stockpiles in Shanghai fell last week.

(30/12) COMMODITIES-Copper hits record high amid year-end buying

December 30, 2010

Copper prices hit record highs on
Wednesday, driven by a weaker U.S. dollar and concern over
Chilean supply, while gold neared two-week highs and crude oil
remained above $91 a barrel in a year-end buying flurry.
Benchmark three-month London Metal Exchange copper futures
hit an all-time high of $9,447 a tonne, little affected by an
interest rate rise in top consumer China, as the dollar weakened
and the closure of the Patache port terminal in Chile blocked
exports from Collahuasi, the world's third-largest copper miner.
China is raising rates to contain inflation, but this should
not be seen as a reason to sell commodities, said Dennis
Gartman, who writes an investment newsletter. "The very modest
weakness seen yesterday in commodities and equities was to be
seen as an opportunity to buy, not as a reason to sell," he said
in a note.
LME copper futures were last quoted at $9,440 a tonne at
1253 GMT, up from $9,360 on the LMESelect close on Friday.

(30/12) Copper hits record high amid year-end buying

December 30, 2010


Copper prices hit record highs on Wednesday, driven by a weaker U.S. dollar and concern over Chilean supply, while gold neared two-week highs and crude oil remained above $91 a barrel in a year-end buying flurry.

Benchmark three-month London Metal Exchange copper futures CMCU3 hit an all-time high of $9,447 a tonne, little affected by an interest rate rise in top consumer China, as the dollar weakened and the closure of the Patache port terminal in Chile blocked exports from Collahuasi, the world’s third-largest copper miner.


China is raising rates to contain inflation, but this should not be seen as a reason to sell commodities, said Dennis Gartman, who writes an investment newsletter. “The very modest weakness seen yesterday in commodities and equities was to be seen as an opportunity to buy, not as a reason to sell,” he said in a note.

LME copper futures were last quoted at $9,440 a tonne at 1253 GMT, up from $9,360 on the LMESelect close on Friday.

(30/12) Copper Slips After Jumping To Record Highs

December 30, 2010

Copper prices slipped after jumping to record highs on Indian futures market. The prices derailed from the top on the news that the US case Shiller index declined in October. During October, the seasonally adjusted Case-Shiller 20-City Home Price Index fell 1.0%. It was the fourth consecutive month of decline and the index level was down 0.8% from last October. The narrower 10 City Composite Home Price Index of prices declined 0.9% during October, also down for the fourth month.
MCX Copper Feb expiry closed at Rs. 429.55 per kg, down Rs. 1.6. The markets tested a high of Rs. 432.6 per kg, before dipping at the close. Markets tested a low of Rs. 428.1 per kg, yesterday. LME three month high tested an all time high of $ 9425 per tonne, up $ 94. LME Copper inventories closed at 370950 tonnes, up 225 tonnes on Wednesday.
COMEX Copper is trading at $ 4.3450 per pound, up 0.3 cents. The markets are expected to remain trading on a positive note though the breadth will remain weak. Dollar surrendered the gains on Wednesday and closed at 1.3224 against the EURO after testing a high of 1.308 earlier in the day.

(30/12) Copper at Records in London, New York on China Easing, Recovery

December 30, 2010

Copper surged to records in London and New York on speculation the global recovery is gaining pace and as investor concerns about tightening in China eased after manufacturing growth in the world’s largest metals user slowed.

Three-month copper on the London Metal Exchange rose as much as 1.6 percent to $9,550 a metric ton, surpassing the previous peak of $9,447 reached yesterday. It traded at $9,522 a ton by 3:33 p.m. Singapore time, up 29 percent this year, and poised for a second annual increase. The metal rose to the highest level in almost 3-1/2 years in Shanghai.

“Copper is in a strong, upward trend, and perhaps a strong yuan today is giving a further boost to copper prices,” Lin Hui, head of the research department at Orient Securities Futures Co., said by phone from Shanghai.

Jiangxi Copper Co., the nation’s biggest maker of the metal, gained the most in two weeks.

Economists are expecting data today to show U.S. initial jobless claims fell and Italian business confidence rose to the highest in more than two years. A South Korean report showed industrial production expanded for a 17th consecutive month, adding to signs that Asian economies are picking up.

(30/12) Copper price keeps investors keen - Zambia chamber

December 30, 2010

The high copper price will bring further hefty investment into the sector in Zambia next year, keeping it on track to produce an annual 1 million tonnes by 2012, the head of the body representing foreign miners said.

Chamber of Mines of Zambia president Nathan Chishimba said the trend seen in 2010, when Zambia attracted $2 billion in new mining investments, would continue and would further benefit from stable tax policies in the southern African country.

"I think the prospects for mining in Zambia... are very, very bright," Chishimba told Reuters in an interview on Wednesday.

"A high copper price ... permits flexibility by investors to plough back into improvements in production, improvements in efficiency and overall improvement in output.

"We believe these new projects, once they stabilise, will go a very long way towards achieving the 1 million tonne mark which we have set for ourselves in the next two years or so," he said.

London Metal Exchange copper rose to a record high of $9 447 a tonne on Wednesday when trade resumed after the Christmas break, during which U.S. futures rallied to a top fuelled by a weaker dollar and worries about supply from Chile.

Metals prices are expected to follow their own fundamentals during 2011, as emerging market economies drive ahead and demand recovers in developed nations, pushing copper above $11 000 a tonne, Goldman Sachs forecast this month.

(30/12) Copper Falls in New York After Metal Inventories Extend Advance

December 30, 2010

Copper futures declined in New York after metal inventories posted the longest advance in 11 months, signaling the price rally to a record may be overdone.

Stockpiles in warehouses monitored by the London Metal Exchange rose for the 11th straight sessions. Copper’s relative- strength index, a gauge of price momentum, was over 70 in the previous two days, a level some analysts view as a sign that futures may fall.

Copper “is looking technically overbought,” Alex Heath, the head of industrial metals trading at Royal Bank of Canada Europe Ltd., said in a report. “The risk still would appear to be to the upside for copper, but a correction of some magnitude would appear to be inevitable.”
Copper futures for March delivery dropped 1.65 cents, or 0.4 percent, to close at $4.3115 a pound at 1:24 p.m. on the Comex in New York. Yesterday, the price climbed to a record $4.335. The metal has gained 50 percent since July 1.

(30/12) LME copper hits new record, may climb further

December 30, 2010

Copper climbed to a record on the LME after a two day holiday and caught up with surge in other metals: aluminum and zinc.

Industrial metals, copper in particular, are going to be strong. Copper would go further heights on improved demand outlook from China, the largest buyer of copper. Analysts expect supply constraints to add to the rally, Bloomberg reported.

Three-month copper on the London Metal Exchange gained 1 % to trade at $9,437.50 a metric ton, exceeding the previous high of $9,392 reached Dec. 21. The contract was seen trading at $9,397.25 on 12:18 p.m. Singapore time, high by 27 % this year.

Copper futures on the Comex in New York slid 0.9 percent to get locked at $4.289 a pound after touching a record $4.3350 Tuesday. March contract on the Shanghai Futures Exchange proceeded north for a second day, increasing 0.6 percent to trade at 69,440 yuan ($10,482) per ton.

Copper inventories under the scanner of Shanghai Futures Exchange dipped 7,410 tons to reach 120,426 tons previous week (the biggest decrease since the week ending Sept. 9) even as inventories in LME warehouses currently are down 26 % this year end, well on track for the first annual decline since 2004.

Copper has tripled in two years on Chinese demand, the largest buyer of base metal. Chinese copper consumption may decrease in the coming years by 8% to 11%, still, its burgeoning demands in the form of copper wires and appliance applications as well as expansion in power grids would keep the counting machines ticking.

(30/12) Commodity Outlook for Copper

December 30, 2010

Copper yesterday traded with the negative node and settled -0.37% down at 429.55 fell as investors took profit for the first time in three sessions and closed up in London after record highs as U.K. markets reopened from the long Christmas break. Copper output in Chile, the world's top producer, fell 0.3% in November from a year earlier to 467,478 mt, according to the official statistics on Wednesday. Coupled with general consensus that demand in 2011 will exceed supply however, LME copper prices showed weak movements during the US and European trading hours, and fell back after reaching USD 9,384/mt, despite the US dollar down to 79.76. Finally, LME copper market closed at USD 9,411/mt, up 0.54%. Trading volumes stayed low at around 8,074 lots. For today's session market is looking to take support at 427.6, a break below could see a test of 425.7 and where as resistance is now likely to be seen at 432.1, a move above could see prices testing 434.6.

(30/12) Copper Rises to Record in London on China’s Growth: LME Preview

December 30, 2010

Copper climbed to a record in London after a report that China’s manufacturing is expanding, signaling more demand for industrial metals.
China’s economy may grow 9.5 percent next year, according to RBC Capital Markets. That’s up from its previous estimate of 8.8 percent expansion.
Copper, which has surged 27 percent this year, may extend a rally to reach a record $11,000 a metric ton in the first half of next year, according to a technical analyst with Samsung Securities Co.

(29/12) LME copper hits record high after holidays; chasing US rally

December 29, 2010

London Metal Exchange copper rose more than 1 percent on Wednesday to a record high of $9,437.50 a tonne, after the Christmas break, during which U.S. futures rallied to record highs, fuelled by a weaker dollar and worries about supply from Chile.

copper for delivery in three months on the LME stood at $9,401, up from $9,300 at the kerb close on Thursday and $9,345 during Friday's shortened trading session.

COMEX copper HGc4 ticked down 0.7 percent to 430.00 cents per lb, 3.5 cents off Tuesday's record.

Underpinning copper's strength in the near term is the closure of Chile's Patache port terminal -- which has blocked exports by No. 3 copper miner Collahuasi -- and a supply deficit expected in 2011.

(29/12) LME Copper sets new record of USD 9437.5/tonne

December 29, 2010

The US dollar recovered after initial slip; Dollar Index was back above 80 after slip to 79.59, which finds support from spike in treasury yields.
Gold went back above USD 1400/ounce and gained 1.7% in a single session on Tuesday. It was mildly in the red in Asian trade; strong demand is expected to support prices.
LME Copper catched up after 2 day holiday and set new record of USD 9437.5/tonne. Comex copper was marginally in the red after record yesterday.
Chile's Patache port terminal was shut and blocked supply from Collahuasi. Dollar and supply concerns were seen as support.

(29/12) Copper Rises to Record in London on Growth Outlook: LME Preview

December 29, 2010

Copper climbed to a record in London on speculation economic growth next year will boost demand faster than miners can produce the metal.

(29/12) Copper price soars to record high.

December 29, 2010

In a fast-moving week for commodities, copper rocketed to a new record high, coffee and sugar hit impressive multi-year peaks and crude oil struck two-year pinnacles before the Christmas break.

Copper was spurred higher by Chinese demand and a strike in key producer Chile, while coffee and sugar were supported by keen demand and scarce supplies.
Some markets experienced holiday-shortened trade this week owing to a Christmas Eve holiday on Friday. Copper prices surged to a record 9,392 dollars per tonne on Tuesday on the back of upbeat Chinese data and after a key Chilean mine halted its exports. "Copper has continued to rise this morning on supportive Chinese trade data and news that Collahuasi had called force majeure on concentrate shipments," said Barclays Capital analysts in a note to clients.

Meanwhile, a mystery buyer has snapped up almost 90 per cent of the copper on the LME amid sky-high prices for the industrial metal.

(29/12) BASE METALS: Thin Trade, Data Push Comex Copper To New Record

December 29, 2010

Thin trading volumes and upbeat economic data catapulted Comex copper futures into uncharted territory Tuesday.

The most actively traded contract, for March delivery, settled up 1.15, or 4.8 cents, at $4.3280 a pound on the Comex division of the New York Mercantile Exchange. This is a new record settlement price, beating Monday's record of $4.2800.

(29/12) METALS-US copper ends up after new peak; more highs seen

December 29, 2010

U.S. copper futures rumbled to
a new record in thin dealings on Tuesday, propped up by sharp
falls in the dollar, a strong Chinese currency and threats of
supply disruptions, analysts said.
The benchmark fourth-month copper contract on the COMEX
division of the New York Mercantile Exchange, March HGc4,
settled up 1.1 percent, or 4.8 cents, at $4.3280 per lb.
The metal, used in power and construction and regarded as a
better economic indicator than most commodities, hit a record
$4.3350 on the COMEX despite a drop in the latest readings for
U.S. consumer confidence and home prices.
The copper futures market on the London Metal Exchange
remained shuttered for a second straight day for post-Christmas
holidays. In Asia, Shanghai copper futures' benchmark
third-month contract SCFc3 closed up 290 yuan at 69,000 yuan
a tonne.
Despite its record price on COMEX, copper's traded volume
on the exchange was just around 11,700 lots, or about a quarter
of the 30-day average, by 2:30 p.m. EST (1930 GMT), Thomson
Reuters' preliminary data showed.
"We're making highs on extremely thin volume," said Sean
McGillivray, head of asset allocation for Great Pacific Wealth
Management in Oregon.
Copper has risen with a broad number of other commodities
since September, coinciding with a wider rally on Wall Street
and world equities, after the Federal Reserve came up with a
$600 billion bond buying program to stimulate U.S. growth.

(29/12) MCX Copper rally northbound; 450 mark eyed

December 29 2010

Copper Futures in the Indian commodity bourse ended in positive note at 372.45 rupees per kilogram due to optimistic demand outlook in industrial metals. Copper price tracked rising silver prices and remained in green territory.

At MCX counter, Copper December delivery contract opened slightly higher at 431.10 rupees rose by 0.14 percent with total volume of 12468 lots. Copper price is supported by increase in industry demand. Continuous decrease in stockpiles at London Metal Exchange supports Copper futures to trade upbeat.

(28/12) METALS-US copper climbs to record, unfazed by China rates

December 28, 2010

U.S. copper prices rose to an all-time high on Monday, quickly resuming this year's 28 percent rally after a brief dip following China's Christmas Day increase in interest rates.

Most analyst say Beijing's quarter-point rate increase is unlikely to deter demand from the world's top copper buyer for long, and the fact that it had been long anticipated has blunted the impact on prices. A UK holiday and extremely thin trading conditions in the United States also limited reaction.

The market also gained support from an ongoing port outage in Chile, which is hindering shipments of copper from the world's No. 3 mine for a second week. And Shanghai copper inventories fell last week, although LME stocks have risen for two weeks amid their biggest sustained rise since February.

On the New York COMEX market, where all open outcry trading was delayed until 11 a.m. EST (1600 GMT) due to a massive snowstorm, the most-active March futures contract settled up 2.15 cents at $4.2800 per lb, having earlier touched a record $4.2985, a hair above last week's peak.

Copper and other base metals tend to be most sensitive to demand in China, the top consumer, but Beijing's second rate rise in just over two months had been anticipated for weeks, although it arrived slightly earlier than some had expected. Other commodity markets were also little changed on the news.

(28/12) Copper Expected To Open In Green As EURO Firms Against Greenback

December 28, 2010

A narrow trading range is seen in Copper in the few outings. The traders were sidelined on account of holiday in LME and this is likely to be the case for Tuesday as well. The only cheering factor for Copper in Indian markets could be the rise of EURO against the Dollar. Dollar is now quoting at 1.324 against the EURO, down 78 pips.
The major worry came from China, which hiked interest rates by 0.25%. The lending rate for a term of one year will be 5.81%. Deposit rate will be 2.75% for the similar term.
MCX Copper benchmark expiry contract traded in a narrow range of Rs. 426-430.5 per kg. For coming few days, the activity will be further thin as London Metal Exchange will remain close on 27 Dec 2010. London Metal Exchange Copper forwards closed at $ 9331 per tonne on 24 Dec 2010, up 1.4%.

(28/12) BASE METALS: Thin Trade, Supply Worries Lift Copper To Record

December 28, 2010

Comex copper futures settled at a fresh record high Monday as supply concerns and a weaker dollar were amplified by thin holiday-trading volumes.

The most actively traded contract, for March delivery, settled up 0.5%, or 2.15 cents, at $4.2800 a pound on the Comex division of the New York Mercantile Exchange. This is the highest ever settlement price.

The most-actively traded contract had set a fresh intraday record of $4.2985 a pound overnight in electronic trading.

(28/12) Copper future may shine on lower stocks in 2011

December 28, 2010

Copper touched record highs in beginning of the week as stock continued to shrink, adding to signs that demand remains steady amid concerns that the global economy may be slowing.

Copper stockpiles monitored by the Shanghai Futures Exchange fell 5.8 percent last week, falling for the fourth week out of five, according to data provided by the bourse.

On Monday, Copper December delivery climbs to 330.25 per kilogram, increased by 0.30 percent with total volume of 21667 lots at Multi Commodity Exchange (MCX).

Copper price remain positive defying weak US economic data and as firmed Chinese equity pushed investors to pick up the metals after it touched record high levels.

(28/12) Copper Jumps to Record as China Stockpiles Drop, Demand Outpaces Supplies

December 28, 2010
Copper futures rose to a record as inventories declined in China, the world’s largest user, bolstering speculation that demand will outpace supply.
“Demand is pushing new highs while supply remains reasonably tight,” said Tim Parker, who manages $7.5 billion at T. Rowe Price Group Inc.’s New Era Fund in Baltimore. “There are only days of supply in inventories, and there’s so little new copper coming into the market.”

Copper futures for delivery in March rose 2.15 cents, or 0.5 percent, to close at $4.28 a pound at 1:13 p.m. on the Comex in New York. Earlier, the metal reached $4.2985, the highest ever. Prices have surged 49 percent since July 1, partly on demand from emerging markets including China.

(28/12) Refined copper market balance for Sept-2010 at 80,000 MT: ICSG

December 28, 2010

According to preliminary ICSG (International Copper Study Group) data for September 2010, the refined copper market balance for that period indicated a production deficit of about 80,000 metric tons.

When making seasonal adjustments for world refined production and usage, September showed a deficit of 60,000 tons. The apparent refined copper balance for the first nine month of 2010, including revisions to data previously presented, indicates a production deficit of 436,000 tons (a seasonally adjusted deficit of 179,000 tons), a press release indicated.

This compares with a production deficit of around 55,000 tons (a seasonally adjusted surplus of about 184,000 tons) in the same period of 2009. Contrary to ICSG predictions in September, 9-month data indicate that the global market balance for the full-year 2010 is likely to show a significant deficit owing to stronger than anticipated demand growth.

(28/12) Copper stays green at optimistic Industry demand

December 28, 2010

Copper touched record highs in beginning of the week as stock continued to shrink in international market.

Lower stockpiles are adding to signs that demand remains steady amid concerns that the global economy may be slowing.

On Tuesday, Copper December delivery climbs to 430.85 per kilogram, increased by 0.10 percent with total volume of 19652 lots at Multi Commodity Exchange (MCX).

(27/12) Copper hits new record; oil strikes two-year peaks

December 27, 2010

Copper was spurred higher by Chinese demand and a strike in key producer Chile, while coffee and sugar were supported by keen demand and scarce supplies.

And the cocoa market extended gains as traders worried about escalating violence in top producer Ivory Coast in the wake of disputed presidential elections.

Chile's massive Collahuasi copper mine on Monday suspended exports following a ship-loading crane accident that killed three workers at the port where its concentrate is shipped.

The world's third largest copper mine produces around three percent of global supplies and is located near the city of Iquique, in far northern Chile.

(27/12) METALS-Shanghai metals pare losses, copper up on demand outlook

December 27, 2010

Shanghai base metals futures
pared losses on Monday on a volume weighted average basis,
with copper, up a fraction of a percent following early losses
on China's Christmas Day interest rate hike.
The three-month copper contract SCFc3 on the Shanghai
Futures Exchange rose by 30 yuan to 68,980 yuan per tonne by
0254 GMT, having slipped as low as 68,310 yuan at the start of
trade.

The London Metal Exchange was closed on Monday for
Christmas holidays and trade will only resume on Wednesday.
When Shanghai closed on Friday, LME copper stood at
$9,345 a tonne.
U.S. copper futures HGc4 rose 0.6 percent on Monday to
428.35 cents per lb ($9,443 a tonne) from Thursday's
settlement. At that time, LME copper stood at $9,300.

(27/12) Copper market braces for more substitution

December 27, 2010

Copper's climb to all-time records will spur substitution in some applications, but the metal's unrivalled conductivity and a dearth of alternative technologies will ultimately limit this trend. Fuelling consumers' incentive to substitute, three-month copper on the London Metal Exchange struck an all-time high of $9,325.25 a tonne on Dec. 21.

The metal used in power and construction, up some 25 percent so far this year, was at $9,280 a tonne at 1033 GMT on Dec. 23. The copper price looks set to stay robust, with the market expecting a hefty deficit next year due to climbing demand in top metals consumer China, global labour issues and falling ore grades in top producing countries such as Chile.

(27/12) Copper in New York Gains to Record on China Demand, U.S. Recovery Outlook

December 27, 2010

Copper in New York climbed to a record amid declining stockpiles in China, the largest user, and after positive U.S. economic data spurred expectations the global economic recovery will continue.

Metal for March delivery on the Comex in New York gained as much as 0.9 percent to $4.2985 a pound, the highest ever, and traded at $4.2755 by 11:10 a.m. London time. The London Metal Exchange is closed today and tomorrow for public holidays.

Copper stockpiles monitored by the Shanghai Futures Exchange fell 5.8 percent last week, declining for the fourth week out of five, according to data provided by the bourse. Inventories dropped to 120,426 tons, based on a survey of seven warehouses in Shanghai, the exchange said.

The global copper market is estimated to have a 550,000 ton deficit next year as falling stockpiles push prices to $5 a pound, Macquarie Bank Ltd. said in a research report today. The forecast was based on an assumption of 4 percent mine supply disruption, or 720,000 tons, with global stocks falling to less than three weeks of world consumption, according to the report.

(25/12) Copper May Rise as Mining Disruptions Curb Supplies, According to Survey

December 25, 2010

Copper may rise as mine disruptions curb supply amid increased investor demand, a survey showed.
Seven of 14 analysts, investors and traders surveyed by Bloomberg, or 50 percent, said the metal will gain next week. Six predicted lower prices and one was neutral. Copper for three-month delivery rose 2.3 percent for this week at $9,280 a metric ton by 4:13 p.m. yesterday on the London Metal Exchange.
The Collahuasi copper mine in Chile said Dec. 20 it won’t ship the metal from the northern Patache port until further notice after an accident shut down the port. Copper demand will exceed output by 825,000 tons next year, Barclays Capital said in a Dec. 22 report.
“The underlying story is still very strong for copper,” said Dan Smith, an analyst at Standard Chartered Plc in London. “There are ongoing problems in Chile and generally there is still a lot of interest by investors in copper.”
The red bars on the attached chart are derived by subtracting bearish forecasts from bullish estimates, with readings below zero signaling the majority of respondents expect a decline. The green line shows the copper price. The survey data shown are as of Nov. Dec. 17.

(25/12) Copper futures marginally up on short-covering, spot demand

December 25, 2010

Copper futures prices rose by 0.18 per cent to Rs 426.35 per kg today largely on the back of covering-up of short positions by speculators ahead of monthly expiry even as the metal softened at the London Metal Exchange (LME) in subdued pre-holiday trade.

At the Multi Commodity Exchange counter, copper delivery for February edged up by 75 paise, or 0.18 per cent, to Rs 426.35 per kg, with a business turnover of eight lots.

The metal for delivery in April traded higher by 65 paise, or 0.15 per cent, to Rs 428.50 per kg, with an open interest of seven lots.

Market analysts said apart from covering-up of short positions by speculators, strong spot demand supported the surge in copper futures prices, but weak trend at the LME as tightened credit in China and ample supplies damped the demand outlook in the world's largest consumer.

(25/12) Copper Gains, Set for Fourth Weekly Rise, on U.S. Economic Data

December 25, 2010

Copper gained, poised for a fourth weekly advance, as positive U.S. economic data and expectation of higher Chinese imports boosted the demand outlook.

The metal for three-month delivery erased earlier declines to gain 0.6 percent to $9,353 a metric ton on the London Metal Exchange as of 3:24 p.m. in Shanghai, or 0.4 percent less than the record $9,392 reached Dec. 21. The bourse will be closed on Dec. 27 and Dec. 28.

“The uptrend remains intact given favorable data and news from the U.S.,” Peng Qiang, an analyst at Cofco Futures Co., said by phone from Beijing. “The drop on Wednesday and Thursday was due to profit-taking after the contract hit a record.”
The Shanghai bourse said yesterday it will allow copper and aluminum at bonded warehouses to be delivered against futures contracts, a move expected to facilitate physical flows and bring Shanghai prices closer to international market levels. Two warehouses at Yangshan port in Shanghai will provide delivery services from March 16 next year.

(25/12) Copper Rises in London on Port Disruption in Chile: LME Preview

December 25, 2010

Copper rose for the first time in three days as an extended port closing in Chile, the world’s largest producer, may curb supplies of the metal.
Copper may rise as mine disruptions curb supply amid increased investor demand, a survey showed.
China’s demand for copper, iron ore and farm products including cotton will expand next year as the Asian nation builds more roads and houses and more people move to cities,

(25/12) LME LATEST - Copper stocks rise for 9th day, backwardation endures

December 25, 2010

Base metals drifted lower on Thursday morning as traders moved to book profits before the year-end, while the inventory report showed stock increases across most of the industrial metals complex.

- Copper traded at $9,265.75, down $84.25, while inventories climbed for the ninth consecutive day, rising by 3,775 tonnes to 367,725.

- Copper stocks have continued to rise as LME backwardation persists. Copper is leaning towards backwardation across its entire term structure, and is backwardated from April of next year forward.

- The latest data in the copper market indicates that a single trader owns 80-90 percent of the copper sitting in London Metal Exchange warehouses, equal to about half of the world's exchange-registered copper stockpile and worth about $3 billion.

(25/12) Copper rises on global cues

December 25, 2010

Copper prices recovered by Rs 2 per kg on the local non-ferrous metal market today on pick up in industrial demand on the back of a firm trend at the London Metal Exchange (LME).
In the national capital, copper wire scrap, copper wire bar and copper mixed scrap were up by Rs 2 each to Rs 461, Rs 485 and Rs 446 per kg, respectively.

(23/12) LME OPEN - Metals regress on profit-taking, uptrend still intact

December 23, 2010

Copper drifted off the previous session’s record high on Wednesday, falling for the first time in four days as investors took profits and news that Japan’s economic growth will slow in 2011 triggered the cautious side of traders.
Three-month LME copper came within an arm’s length of Tuesday’s record high of $9,392, trading as high as at $9,390 early Wednesday morning before settling lower.

Supply concerns remained on the forefront of traders’ minds on Wednesday, as Chile’s Collahuasi mine, the third largest in the world, attempted to find an alternative route for shipments after a fatal accident shut its Patache port terminal.

The upward trend in copper is expected to remain in place well into 2011, and from here, analysts see copper targeting the $10,000 level or higher. “It is impossible to say where the next upside target lies, as there are no signposts to guide us on the charts, but the $10,000 mark seems to be the next logical target,” Ed Meir, analyst at MF Global said on Tuesday.

(23/12) LME LATEST - Copper dwells below record highs, US data unsupportive

December 23, 2010

Base metals traded firmly on Wednesday afternoon but profit-taking and a stronger dollar limited gains across the complex.

- Supply worries have grown as copper shipments from the world’s third-largest producer were stymied earlier this week after a fatal accident at a port serving Chile’s Collahuasi mine. Copper edged $25 lower to $9,340 while aluminium traded at $2,456.75, up $21.75.

-

(23/12) Commodity Outlook for Copper

December 23, 2010

Copper traded in the range of 425-429 but stayed within reach of record highs as supply concerns persisted, but investor book-squaring undermined prices of base metals.Some pressure had been seen from the LME stock also which came down by 1225mt, the total stock at LME is now at 363950mt. In yesterday's trading session copper has touched the low of 425 after opening at 428.1, and finally settled at 427.15. For today's session market is looking to take support at 425.3, a break below could see a test of 423.5 and where as resistance is now likely to be seen at 428.7, a move above could see prices testing 430.2.

(23/12) Copper futures soften on global cues

December 23, 2010

Copper futures prices fell by 0.66 per cent to Rs 424.35 per kg today, as speculators reduced their positions after metal declined overseas on fall in demand from China.

At the Multi Commodity Exchange counter, copper for delivery in February traded Rs 2.80, or 0.66 per cent down at Rs 424.35 per kg, with a trading volume of six lots.

The metal for delivery in April also weakened by Rs 2.80, or 0.65 per cent to Rs 426.55 per kg, with a business turnover of three lots.

Analysts said a weak trend at the London Metal Exchange (LME), as recent rally in metal prices deterred buying in China, the largest consumer, mainly weighed on copper futures prices here.

They said rise in inventories, monitored by the LME, which touched the highest since November 10 yesterday, also weighed on the metal prices.

Meanwhile, at the LME, three-month copper dropped as much as 0.3 per cent to $9,322.25 a metric tonne, after reaching a record 9,392 a tonne on December 21.

(23/12) LME METALS-Factors To Watch on Dec 23

December 23, 2010

Copper eased on Thursday as
investors consolidated gains after hitting record highs earlier
this week, while falling equity markets in China, the world's
top metals consumer, also weighed on sentiment.
* Three-month copper CMCU3 on the London Metal Exchange
was trading at $9,300 a tonne at 0819 GMT compared with $9,350
at the close on Wednesday.

(23/12) MF global offers caution despite recent record high in LME copper

December 23, 2010

LME copper barreled its way to a record high of $9 392 a metric ton Tuesday and came close to testing this again today but there are some variables that should give longs reason to take some money off of the table especially now that prices are in nose bleed territory says MF Global analyst Edward Meir. Support came from a force majeure declaration after a port accident halted shipments from the Collahuasi mine in Chile as well as strong Chinese import data. Still one of the variables that concerns Meir is the recent uptick in LME copper stocks after a previous several month decline.

(23/12) Copper remains weak on global trend

December 23, 2010

In limited deals, copper continued to drift by losing Rs 2 per kg on the local non-ferrous metal market today due to reduced offtake by consuming industries, amid weakening trend at the London Metal Exchange (LME).

Copper for three-month dropped by 0.3 per cent to $9,322.25 a tonne at the LME as recent rally in metal prices deterred buying in China, which is the largest consumer.

In the national capital, copper wire scrap, copper wire bar and copper mixed scrap remained remained weak and shed another Rs 2 each to Rs 461, Rs 485 and Rs 446 per kg, respectively.

(22/12) LME copper at fresh record $9,327/T on Chile trouble, China imports

December 22, 2010

LME copper advanced to a new record of $9,327 per tonne on Monday, helped by export disruption from Chile and 37% increase in Chinese imports during November. Shanghai copper rose by nearly 1%, as customs figures showed refined copper imports going up to 232,298 tonnes in November, 37% higher than October, according to Chinese customs. The key March copper contract on the...

(22/12) Copper futures gain 0.17% on global cues

December 22, 2010

Copper futures prices moved up by 0.17 per cent to Rs 423.30 per kg today as speculators enlarged positions, tracking firm trends at London Metal Exchange (LME) and Shanghai.

At the Multi Commodity Exchange, copper for delivery in February gained 70 paise, or 0.17 per cent to Rs 423.30 per kg, with a business turnover of 14 lots.

Similarly, the metal for delivery in April contract edged up by 65 paise, or 0.15 per cent to Rs 425.45 per kg, with a business turnover of three lots.

Market analysts said firm trends in overseas markets on hopes of boost in demand outlook for the metal as economic recovery in the US remains on track, influenced copper futures prices here.

(22/12) CORRECTED-METALS-Shanghai copper hits 33-month high

December 22 2010

Shanghai copper hit its
highest since March 2008 on Monday, on expectations that
prices will rise further in the coming months on inflation
worries and belief that tighter China monetary policy won't
dent demand next year.

Shanghai's benchmark third-month copper SCFc3 hit a
33-month high of 69,700 yuan a tonne, before retreating to
close at 68,640 yuan, up 0.3 percent from the previous close.

Three-month copper on the London Metal Exchange
rose as much as two percent to $9,258 a tonne, just $10 off
its record high of $9,267.5. It was trading at $9,171, up more
than one percent.

Shanghai copper stocks grew 10 percent last week to a
six-month high of 127,836 tonnes, while LME copper stocks rose
to a one-month peak, after falling steadily since February.
MCU-STOCKS CU-STX-SGH

"Copper still has the best fundamentals in the base metals
complex," said a Shanghai-based trader, "The price outlook is
good, supported by anticipation of inflation down the road."

(22/12) Copper futures gain 0.17% on global cues

December 22, 2010

Copper futures prices moved up by 0.17 per cent to Rs 423.30 per kg today as speculators enlarged positions, tracking firm trends at London Metal Exchange (LME) and Shanghai.

At the Multi Commodity Exchange, copper for delivery in February gained 70 paise, or 0.17 per cent to Rs 423.30 per kg, with a business turnover of 14 lots.

Similarly, the metal for delivery in April contract edged up by 65 paise, or 0.15 per cent to Rs 425.45 per kg, with a business turnover of three lots.

Market analysts said firm trends in overseas markets on hopes of boost in demand outlook for the metal as economic recovery in the US remains on track, influenced copper futures prices here.

Meanwhile, at the LME, copper for three-month delivery added 0.5 per cent to $9,247 a tonne.

(22/12) Copper futures gain 0.17% on global cues

December 22, 2010

Copper futures prices moved up by 0.17 per cent to Rs 423.30 per kg today as speculators enlarged positions, tracking firm trends at London Metal Exchange (LME) and Shanghai.

At the Multi Commodity Exchange, copper for delivery in February gained 70 paise, or 0.17 per cent to Rs 423.30 per kg, with a business turnover of 14 lots.

Similarly, the metal for delivery in April contract edged up by 65 paise, or 0.15 per cent to Rs 425.45 per kg, with a business turnover of three lots.

Market analysts said firm trends in overseas markets on hopes of boost in demand outlook for the metal as economic recovery in the US remains on track, influenced copper futures prices here.

Meanwhile, at the LME, copper for three-month delivery added 0.5 per cent to $9,247 a tonne.

(22/12) Copper Falls After Japan Forecasts Slower Growth: LME Preview

December 22, 2010

Copper fell in London for the first time in four days after Japan forecast slower economic growth.
Sales of existing homes probably rose in November as the industry that triggered the worst recession in seven decades struggled to recover, economists said before a report today.
Copper may rally to new records as China imports more of the metal in the first quarter and the launch of exchange-traded products locks up physical supplies, said an analyst at Beijing Antaike Information Development Co.

(22/12) METALS-Copper ends up as market eyes 2011 demand boost

December 22, 2010

Copper closed up on Friday, notching its third consecutive week of gains, as short-term technical momentum and bullish demand prospects from China in the new year kept prices buoyant near all-time record peaks.

Copper bulls were unfazed by a broad-based drop in global equity markets and a rallying dollar, and instead focused on a positive stream of economic data that suggested improved demand conditions in the year ahead.

"These markets have shown an ability over the course of the year to withstand moves in the euro/dollar relationship. I think the supply/demand fundamentals are strong enough to triumph, or continue to triumph," he said.

London Metal Exchange (LME) benchmark copper CMCU3 ended up $79 at $9,070 a tonne, nearly $200 away from its all-time record peak at $9,267.50 hit on Dec. 14.
COMEX copper for March delivery HGH1 climbed 4.30 cents, or 1 percent, to settle at $4.1590 per lb.

On Tuesday, it hit its own all-time high at $4.2290.

Copper has rallied more than 50 percent since early June, with much of the rise in recent weeks tied to speculation that China will return to the global copper market early next year after a period of destocking.

"Chinese re-stocking next year is possible and on the plus-side," Edward Meir, energy and metals analyst for MF Global in New York. "On the minus-side, continued tightening would crimp demand."

(22/12) METALS-Copper ends up as market eyes 2011 demand boost

December 22, 2010

Copper closed up on Friday, notching its third consecutive week of gains, as short-term technical momentum and bullish demand prospects from China in the new year kept prices buoyant near all-time record peaks.

Copper bulls were unfazed by a broad-based drop in global equity markets and a rallying dollar, and instead focused on a positive stream of economic data that suggested improved demand conditions in the year ahead.

"These markets have shown an ability over the course of the year to withstand moves in the euro/dollar relationship. I think the supply/demand fundamentals are strong enough to triumph, or continue to triumph," he said.

London Metal Exchange (LME) benchmark copper CMCU3 ended up $79 at $9,070 a tonne, nearly $200 away from its all-time record peak at $9,267.50 hit on Dec. 14.
COMEX copper for March delivery HGH1 climbed 4.30 cents, or 1 percent, to settle at $4.1590 per lb.

On Tuesday, it hit its own all-time high at $4.2290.

Copper has rallied more than 50 percent since early June, with much of the rise in recent weeks tied to speculation that China will return to the global copper market early next year after a period of destocking.

"Chinese re-stocking next year is possible and on the plus-side," Edward Meir, energy and metals analyst for MF Global in New York. "On the minus-side, continued tightening would crimp demand."

(22/12) Copper prices driven higher in 'buyer frenzy'

December 22, 2010


Copper prices have rebounded strongly on the back of a launch of new exchange trade products (ETPs).

"The copper price has skyrocketed in recent weeks; the three-month price reached an all-time high in mid-December. A combination of bullish factors has come together, creating a fresh wave of bullish sentiment," says Dan Smith at Standard Chartered.

First is that physical exchange trade products (ETPs) for base metals have finally gotten the go-ahead, with ETF Securities launching its new copper contract.

"We forecast that copper prices rally to average USD 8,600/tonne (t) in Q4 (up from USD 8,300/t previously) and prices rally further into 2011 to average USD 8,825/t (up from USD 8,375/t) and USD 9,250/t in 2012. Volatility around these averages will be considerable, and price spikes above USD 12,000/t are possible during 2012. Further upside is anticipated heading into 2014."

(22/12) Copper Falls on Concern Europe Debt Crisis May Hamper Growth

December 22, 2010
Copper prices fell the most in three weeks in New York as a potential downgrade of Spain’s credit rating revived concern that Europe’s debt crisis will worsen, hampering the global economic rebound.

Moody’s Investors Services said Spain’s rating may be cut from Aa1, amid growing concern it could follow Greece and Ireland in seeking a bailout. Prices also fell on speculation that China, the world’s largest metals consumer, may have to raise interest rates to cool inflation.
Copper futures for March delivery fell 7.65 cents, or 1.8 percent, to close at $4.1325 a pound at 1:27 p.m. on the Comex in New York, the biggest loss for a most-active contract since Nov. 22.

(22/12) Copper Prices Fall on Disappointing Housing Data

December 22, 2010

Copper retreated Thursday after a new report showed that the housing market remains weak.

Copper fell 1.6 cents to settle at $4.1105 a pound, just two days after hitting a high for the year of $4.2015 a pound.

The Commerce Department reported a 3.9 percent increase in housing starts in November. The total was 16 percent more than the unit pace in April 2009, which was the lowest point on record dating to 1959.

The price dip followed a pattern across many commodities as more upbeat economic news helped strengthen the dollar. The government said the number of people applying for unemployment benefits fell last week. That built on earlier news that retail sales and factory production improved in November.

Since most commodities are priced in dollars, a stronger dollar makes them less attractive to buyers who use other currencies such as the euro. Some investors are also trimming back their portfolios and taking profits ahead of the holidays.

(22/12) Copper mines production on course

December 22, 2010

Weatherly International’s plan to commence production of copper at the Otjihase and Matchless mines in the first quarter of 2011 seems to be off to a good start as the copper price hit a new record high of US$4.20 per pound on Monday.
The company’s application to export concentrate from Namibia for processing for the period until the end of March next year, has been granted by Ministry of Mines and Energy.
Weatherly now has a permit to export until end of March 2011 and will routinely apply each February and August for six month extensions.

(22/12) MCX Copper stabilizes above 320 marks

December 22, 2010

Copper trend remained on dull side in last few days as buyers took the back seat. Metal prices are expected to be in the consolidation zone for today.

Copper for three-month February delivery opened sharply higher at 415.50, increased by 1.07 percent to 420.75 per Kilogram at Multi Commodity Exchange (MCX).

On Friday, Copper price stays steady with strong buying sentiment in Asian market at lower levels. Copper future expected to remain quiet until price will not break week higher levels.

(22/12) Copper Advances in London, Ending Three-Day Slide: LME Preview

December 22, 2010

Copper rose in London, ending a three-day slide, as better-than-expected U.S. economic data buoyed the demand outlook for the metal used in construction and household appliances.

Japanese copper smelters have extended talks for a further month with mining companies such as BHP Billiton Ltd. after failing to reach an agreement on treatment and refining charges for next year.

(22/12) LME MORNING - Metals retreat as correction ensues, copper tightness less intense

December 22, 2010


Base metals retreated on the LME on Wednesday morning, extending a corrective reaction to recent advances against a background of a steadier dollar.

Also, there were warehouse inventory increases for some due to nearby tightness attracting metal, principally copper, and 'third Wednesday' warehousing considerations in aluminium and lead.

"Prices are off this morning on profit taking and dollar strengthening," Marc Elliott of broker Fairfax said.

The dollar gained as European sovereign debt issues came to the forefront again - ratings agency Moody's put Spain's AA1 sovereign rating on review for a possible downgrade. The single currency weakened against the dollar to 1.3285, settling around 1.3295.

Overnight, the US Federal Reserve was lukewarm on the economy's prospects for improvement, focussing on high unemployment and restating its commitment to buy $600 billion in bonds. Data due today from the US, meanwhile, includes the CPI, manufacturing and industrial production.

This morning, copper ranged widely, trading to within $23 of yesterday's all-time peak of $9,267.50 before sliding to $9,070.

(22/12) BASE METALS: Comex, LME Copper Eases On Dollar, Inflation

December 22, 2010

Comex copper futures followed London Metal Exchange copper contracts into negative territory Wednesday as a stronger dollar weighed on prices.

The most actively traded contract, for March delivery, was recently down 1.5%, or 6.3 cents at $4.1460 a pound on the Comex division of the

(22/12) METALS-Shanghai copper lower after dollar drags LME down

December 22, 2010

Shanghai copper fell 1
percent on Thursday and London extended its declines, as
investors abandoned attempts to score a new high in the face
of a resurgent dollar and reduced risk appetite.

Three-month copper on the London Metal Exchange
fell 0.8 percent to $9,023.75 a tonne by 0708 GMT, extending
the previous session's slide, when copper stumbled after it
came within $25 of a record high of $9,267.50.

Copper has hit a series of record highs this week since a
raft of positive Chinese data. But the weight of the surging
dollar, which climbed 1 percent against the yen and the euro
in the previous session, prompted investors to cash in
positions.

(22/12) Commodity Outlook for Copper

December 22, 2010

Copper ended lower as the stronger dollar weighed on prices. Some pressure had been seen from the LME stock also which came down by 7050mt, the total stock at LME is now at 357950mt.Copper traders continued to eye China, copper's largest consumer, which didn't raise interest rates last weekend as many market participants expected. In the background remains the possibility of further Chinese 'tightening' which if it happens could spark a reactive sell off short term. Copper has touched a low of Rs 414.7 a kg after opening at Rs 419.85, and last traded at Rs416.For today market is looking for the support at 413.6, a break below could see a test of 411.1 and where as resistance is now likely to be seen at 419.6, a move above could see prices testing 423.1.

(22/12) LME LATEST - Copper bottoms out below $9,000, year-end correction continues

22 December 2010

Copper bounced around session lows below $9,000 early on Thursday early afternoon, paying little attention to movements in currencies and continuing to fall as part of the recent price correction ahead of the imminent end of the year.

- The euro was last seen at 1.3244 versus the dollar, up almost a quarter of a cent on the day but off a peak of 1.3264 seen this morning. European equities were mixed and close to parity. A slew of economic releases from the US are due this afternoon ahead of a meeting between EU leaders to discuss the sovereign debt crisis.

- Copper traded below the key $9,000 per tonne mark at $8,962.50, a $132.50 fall. LME stocks rose for the fourth consecutive day, up 2,850 tonnes to 360,800 tonnes, while cancelled warrants - the metal booked for removal - dropped another 2.6 percent to 18,700 tonnes, the lowest since early October. TOM/next swung from a $2.00 backwardation to $1 contango.

(15/12) One Company Holds at Least 90% of LME Copper Stocks

December 15, 2010

One unidentified company holds 90 percent or more of copper stockpiles in warehouses monitored by the London Metal Exchange, the latest bourse data shows.

The so-called dominant position indicated in the Warrant Cash Banding Report was previously 50 percent to 79 percent and moved to the higher band on Dec. 10, according to data from the bourse. The figure includes stockpile holdings and open positions for the next three trading days. Each warrant represents one lot of metal, equal to 25 metric tons.

The fee to borrow copper for next-day delivery, also known as the tom-next spread, jumped to a premium of as much as $13 today, the most since July 2009. It was last at a discount of 50 cents. LME rules oblige holders of dominant positions to lend metal at fixed rates.
Copper prices climbed to a record in London today and have jumped 24 percent this year on speculation miners and recyclers aren’t producing enough supply to keep up with demand. The shortage will widen to 500,000 metric tons next year from 200,000 tons this year, BNP Paribas SA said in a report today.

Stockpiles in warehouses monitored by the LME fell 30 percent to 350,900 tons this year. Copper for delivery in three months, the benchmark contract, dropped 0.7 percent to $9,165 a ton in London, after earlier reaching a record $9,267.50. That would value 90 percent of LME monitored stockpiles at about $2.9 billion.

(15/12) Copper hits fresh record but later gives up gains on Fed comments

December 15, 2010
Copper ended slightly higher after reaching a record Tuesday, then fell in choppy after-hour trade as the dollar also gyrated following a Federal Reserve policy statement that reaffirmed the outlook for tame inflation and low U.S. interest targets.
After copper settled slightly higher in New York, the Fed said the U.S. economic recovery was still too slow to bring down unemployment. Fed policy makers reaffirmed the central bank’s commitment to keep purchasing U.S. Treasuries to stimulate growth and create jobs.

The Fed also said the pace of business spending seemed to have slowed from earlier in 2010, which suggested slow but steady U.S. demand for copper, a metal used in power and construction.

U.S. dollar trading was choppy after the Fed’s announcement but the euro had already pared gains and retreated from a three-week high against the U.S. currency after stronger-than-expected U.S. retail sales data lifted bond yields and investor optimism about the economy.
Benchmark copper on the London Metal Exchange peaked for a second day, hitting $9,267.50. The metal closed at $9,165 a tonne from a close of $9,220 Monday, its second record level in two days..

(15/12) Dollar Rise Might Correct Copper

December 15, 2010

Dollar is trading with gains after the recent report of retail sales that provided a rosy picture for the economy in the holiday season. Retail Sales rose 0.8% during November (7.7% y/y) following gains of 1.7% and 0.9% during the prior two months, respectively, revised from 1.2% and 0.7%. The rise outpaced expectations for a 0.6% increase. During the last three months, sales have risen at a 14.6% annual rate.

Dollar is now quoting at 1.3349 against the EURO up 24 pips. The markets closed at 1.3377 on 14 Dec 2010.

Today, the markets of Copper are expected to open a bit slower. Shanghai Copper is already trading in red. The benchmark contract for March expiry is at 68600 yuan per tonne, down 400 yuan. COMEX Copper is trading at $ 4.1925 per lb, down 0.016 cents. LME Copper closed the trading at $ 9208 per tonne, up $ 68 tonnes. Inventories of Copper were up 450 tonnes to 350900 tonnes.

MCX Copper closed the trading at Rs 419.5 per kg, after testing a high of Rs 421.4 per kg. Market is expected to find support at Rs 415-416 per kg.

(15/12) Dollar Rise Might Correct Copper

December 15, 2010

Dollar is trading with gains after the recent report of retail sales that provided a rosy picture for the economy in the holiday season. Retail Sales rose 0.8% during November (7.7% y/y) following gains of 1.7% and 0.9% during the prior two months, respectively, revised from 1.2% and 0.7%. The rise outpaced expectations for a 0.6% increase. During the last three months, sales have risen at a 14.6% annual rate.

Dollar is now quoting at 1.3349 against the EURO up 24 pips. The markets closed at 1.3377 on 14 Dec 2010.

Today, the markets of Copper are expected to open a bit slower. Shanghai Copper is already trading in red. The benchmark contract for March expiry is at 68600 yuan per tonne, down 400 yuan. COMEX Copper is trading at $ 4.1925 per lb, down 0.016 cents. LME Copper closed the trading at $ 9208 per tonne, up $ 68 tonnes. Inventories of Copper were up 450 tonnes to 350900 tonnes.

MCX Copper closed the trading at Rs 419.5 per kg, after testing a high of Rs 421.4 per kg. Market is expected to find support at Rs 415-416 per kg.

(15/12) Dollar Rise Might Correct Copper

December 15, 2010

Dollar is trading with gains after the recent report of retail sales that provided a rosy picture for the economy in the holiday season. Retail Sales rose 0.8% during November (7.7% y/y) following gains of 1.7% and 0.9% during the prior two months, respectively, revised from 1.2% and 0.7%. The rise outpaced expectations for a 0.6% increase. During the last three months, sales have risen at a 14.6% annual rate.

Dollar is now quoting at 1.3349 against the EURO up 24 pips. The markets closed at 1.3377 on 14 Dec 2010.

Today, the markets of Copper are expected to open a bit slower. Shanghai Copper is already trading in red. The benchmark contract for March expiry is at 68600 yuan per tonne, down 400 yuan. COMEX Copper is trading at $ 4.1925 per lb, down 0.016 cents. LME Copper closed the trading at $ 9208 per tonne, up $ 68 tonnes. Inventories of Copper were up 450 tonnes to 350900 tonnes.

MCX Copper closed the trading at Rs 419.5 per kg, after testing a high of Rs 421.4 per kg. Market is expected to find support at Rs 415-416 per kg.

(15/12) Dollar Rise Might Correct Copper

December 15, 2010

Dollar is trading with gains after the recent report of retail sales that provided a rosy picture for the economy in the holiday season. Retail Sales rose 0.8% during November (7.7% y/y) following gains of 1.7% and 0.9% during the prior two months, respectively, revised from 1.2% and 0.7%. The rise outpaced expectations for a 0.6% increase. During the last three months, sales have risen at a 14.6% annual rate.

Dollar is now quoting at 1.3349 against the EURO up 24 pips. The markets closed at 1.3377 on 14 Dec 2010.

Today, the markets of Copper are expected to open a bit slower. Shanghai Copper is already trading in red. The benchmark contract for March expiry is at 68600 yuan per tonne, down 400 yuan. COMEX Copper is trading at $ 4.1925 per lb, down 0.016 cents. LME Copper closed the trading at $ 9208 per tonne, up $ 68 tonnes. Inventories of Copper were up 450 tonnes to 350900 tonnes.

MCX Copper closed the trading at Rs 419.5 per kg, after testing a high of Rs 421.4 per kg. Market is expected to find support at Rs 415-416 per kg.

(15/12) Dollar Rise Might Correct Copper

December 15, 2010

Dollar is trading with gains after the recent report of retail sales that provided a rosy picture for the economy in the holiday season. Retail Sales rose 0.8% during November (7.7% y/y) following gains of 1.7% and 0.9% during the prior two months, respectively, revised from 1.2% and 0.7%. The rise outpaced expectations for a 0.6% increase. During the last three months, sales have risen at a 14.6% annual rate.

Dollar is now quoting at 1.3349 against the EURO up 24 pips. The markets closed at 1.3377 on 14 Dec 2010.

Today, the markets of Copper are expected to open a bit slower. Shanghai Copper is already trading in red. The benchmark contract for March expiry is at 68600 yuan per tonne, down 400 yuan. COMEX Copper is trading at $ 4.1925 per lb, down 0.016 cents. LME Copper closed the trading at $ 9208 per tonne, up $ 68 tonnes. Inventories of Copper were up 450 tonnes to 350900 tonnes.

MCX Copper closed the trading at Rs 419.5 per kg, after testing a high of Rs 421.4 per kg. Market is expected to find support at Rs 415-416 per kg.

(15/12) Copper Falls for Second Day After Rally to Record: LME Preview

December 15, 2010

Copper declined for a second day as some investors sold the metal to lock in gains after it climbed to a record yesterday.

(15/12) Copper may rise further although Chinese monetary policy remains concern

December 15, 2010

LME copper has backed down after earlier hitting a fresh record of $9 267 per metric ton says MF Global analyst Edward Meir. The Relative Strength Index is getting overbought with a 71 reading but is not in extreme territory yet he says. Absent a trigger to induce some selling the market will likely push higher from here he says. In fact commodity markets collectively are on a boil with the path of least resistance being higher he says. Still Meir cautions that the euphoria could be getting overextended with prices vulnerable to a correction.


We suspect the country that has given the markets the most reasons to go up China also has the capacity to knock them down he says. Chinese authorities did not hike interest rates this weekend as many analysts had expected. Still this could happen yet before year end due to worrying inflation Meir says. One Chinese policy maker says the country s inflation target for next year would be raised to 4% from 3%. However this would still not paper over the need for further tightening as the current inflation rate (5.11%) is running well above target.

(15/12) Chile mine chamber sees copper price high for 2 years

December 15, 2010

Chile's mining chamber expects prices for No. 1 export copper to remain high for the next two years, chamber head Miguel Angel Duran said Tuesday.

Duran added that a month-long strike at Chile's giant Collahuasi copper mine could hit the deposit's annual output target.

(15/12) Copper Falls From London Record on Concern China Demand to Ease

December 15, 2010

Copper fell from a record in London amid renewed investor concern that China, the world’s largest metal consumer, will take more steps to curb inflation.

China increased reserve-requirement ratios for banks last week amid accelerating consumer prices. The country risks a more abrupt tightening in monetary policy, according to firms including Mizuho Securities Asia Ltd. Copper prices on the London Metal Exchange have surged 45 percent since July 1 as demand from emerging markets reduced global inventories.
Copper for delivery in three months dropped $60, or 0.7 percent, to $9,165 a metric ton ($4.16 a pound) on the LME at 6:11 p.m. in London. Earlier, the price rose to a record $9,267.50.
Copper futures for March delivery added 0.2 cent to $4.209 a pound on the Comex in New York, the highest closing price ever, after slipping as much as 0.5 percent. Earlier, the metal reached $4.229, the highest for a most-active contract since May 2008, when the commodity jumped to a record $4.2605.

(15/12) Copper Rises to Record in London Trading on Outlook for Stronger Growth

December 15, 2010

Copper rose to a record for a second day in London before a U.S. report that may signal growth in the world’s biggest economy as the Federal Reserve prepares to discuss interest rates and bond purchases.

U.S. retail sales in November probably jumped for a fifth consecutive month, economists said before a Commerce Department report today. The dollar fell today on speculation the Fed may signal it’s open to increasing debt purchases to boost growth.

U.S. fiscal stimulus and “improving economic data” are supporting copper, said David Thurtell, an analyst at Citigroup Inc. in London.

Copper for delivery in three months rose as much as $37 to the all-time high of $9,262 a metric ton, and was at $9,259.75 a ton at 10:47 a.m. on the London Metal Exchange. Copper for delivery in March climbed as much as 0.5 percent to $4.227 a pound on the Comex in New York, the highest price for a most- active contract since May 2008.

The U.S. retail sales report is due at 1:30 p.m. London time.

Copper has gained 25 percent this year as declining stockpiles signaled more demand. German investor confidence improved for a second month in December as the recovery in Europe’s largest economy shows signs of broadening.

(15/12) Copper heading toward $5 per pound

December 15, 2010

copper price target of $5 a pound in 2011 with $6 even a possibility with the advent of base metals exchange traded funds adding to an already tight market. Demand is picking up in China and other regions Harbor says. ETFs will add to this. Our analysis tilts toward the idea that when structural changes in the market emerge price behavior changes permanently Harbor says.


In this case our data suggest it will highly likely imply a boost to copper volatility and an upward bias on prices. Most copper substitution due to higher prices is already done and refined copper output is likely to continue lagging demand

(15/12) Copper heading toward $5 per pound

December 15, 2010

copper price target of $5 a pound in 2011 with $6 even a possibility with the advent of base metals exchange traded funds adding to an already tight market. Demand is picking up in China and other regions Harbor says. ETFs will add to this. Our analysis tilts toward the idea that when structural changes in the market emerge price behavior changes permanently Harbor says.


In this case our data suggest it will highly likely imply a boost to copper volatility and an upward bias on prices. Most copper substitution due to higher prices is already done and refined copper output is likely to continue lagging demand

(15/12) Copper heading toward $5 per pound

December 15, 2010

copper price target of $5 a pound in 2011 with $6 even a possibility with the advent of base metals exchange traded funds adding to an already tight market. Demand is picking up in China and other regions Harbor says. ETFs will add to this. Our analysis tilts toward the idea that when structural changes in the market emerge price behavior changes permanently Harbor says.


In this case our data suggest it will highly likely imply a boost to copper volatility and an upward bias on prices. Most copper substitution due to higher prices is already done and refined copper output is likely to continue lagging demand

(14/12) METALS-Copper hits record highs as China holds rates steady

December 14, 2010

Copper hit successive record highs on Monday, boosted by economic prospects for top consumer China, along with a dollar weakness and supply concerns that could propel prices even higher.

Benchmark copper on the London Metal Exchange ended at $9,220 per tonne, from $8,980 at the close on Friday. The metal used in power and construction set a new peak at $9,235.25. It stayed near its strong close into late trade.

In New York, copper for March delivery finished up 9.50 cents at $4.2070 per lb. It shot to a contract high at $4.2225 a lb. In late business, it held at levels near the highs, last trading at $4.2120 a lb.

COMEX copper's session high was a new record for a fourth-month contract. Comparing the price with a third-month contract, meaning delivery three months away, March copper rallied to its highest level since May 2008, when it hit an all-time high at $4.2605.

(14/12) METALS-Copper hits record highs on China, fundamentals

December 14, 2010

Copper hit successive record
highs on Monday, boosted by economic prospects for top consumer
China, and supply concerns that could propel prices even higher.

Benchmark copper on the London Metal Exchange CMCU3
finished at $9,220, from $8,980 at the close on Friday. The
metal used in power and construction earlier peaked at $9,235.25
a tonne.

Copper's gains also boosted other metals, with nickel
CMNI3 and lead CMPB3 edging to one-month highs.

"Obviously the China outlook is helping copper, but more
than a general story it's very much a (fundamental) copper
story," said BNP Paribas analyst Stephen Briggs.

Base metals have reacted positively to Chinese import data
out last week and the fact Beijing has not raised interest rates
despite climbing inflation.

(14/12) METALS-Copper eases after ShFE hits 1-mth peak, LME near record

December 14, 2010

Shanghai copper reversed
gains after touching a one-month high on Tuesday, while London
futures backed away from the previous session's record peak,
but sentiment remains solid on strong technical signals and
China's positive economic outlook.

Three-month copper on the London Metal Exchange
traded at $9,185 a tonnes by 0423 GMT, down $35 from Monday's
close, but not far from the previous session's all time peak
of $9,248.

Shanghai's benchmark third month SCFc3 dipped 0.2
percent to 68,360 yuan, having rallied to a one-month peak of
69,070 yuan earlier.

(14/12) Copper Surges to Record as China Refrains From Raising Rates

December 14, 2010

Copper prices climbed to a record in London and closed at an all-time high in New York after China refrained from raising borrowing costs over the weekend, bolstering speculation that metal demand will continue to rise.

Last week, China increased reserve-requirement ratios for banks by half a percentage point amid accelerating inflation. The country, the world’s largest metal user, said on Dec. 10 that imports of copper and copper products gained for the first time in three months.
Copper for delivery in three months gained $235, or 2.6 percent, to close at $9,225 ($4.18 a pound) at 6:11 p.m. on the London Metal Exchange. Earlier, the price reached $9,248, the highest ever.

(14/12) Copper, Lead Production in China Jump to Monthly Records as Prices Advance

December 14, 2010

Copper and lead output in China, the largest consumer of both metals, advanced to records in November as producers increased output following price gains. Aluminum production declined for a third month.

Output of refined copper climbed to 443,000 metric tons last month, 4.5 percent higher than the month before, while production of refined lead gained 29.5 percent to 448,000 tons, the statistics bureau said today. Those are monthly records, according to traders and analysts.

Production of copper expanded 12.6 percent in the first 11 months to 4.374 million tons and lead output rose 9.2 percent to 3.954 million tons in the same period, the bureau said. Copper, which traded at a record in London today, is used in pipes and wiring, while lead is used mainly in batteries.

“There will always be a supply response to higher prices,” said Lin Yi, a deputy manager at Zhongda Futures Co. “The price of refined copper has increased, and the amount smelters get paid for refined copper has also increased.”

Copper for three-month delivery on the London Metal Exchange advanced 4.3 percent in the past two months, and reached an all-time high of $9,102 a ton today. The metal has advanced 24 percent this year.

China’s imports of copper concentrate advanced to a record 683,523 tons in September as treatment fees improved. The fees usually climb when there is ample raw material, and mining companies have a greater need to compete for processing capacity.

(14/12) Copper price hits record high on China data

December 14, 2010

opper hit a new record high on Monday, boosted by strong data from top consumer China over the weekend, and supply worries could propel prices even further.

Benchmark copper on the London Metal Exchange traded at $9,141 a tonne in rings from $8,980 at the close on Friday. The metal used in power and construction earlier peaked at $9,160 a tonne.
We see copper prices rising to $9,500 in the first half of next year and staying more or less at that level in the second half of the year. But I don't want to rule out that we can see $10,000 at least at one point," he said. China released a swathe of macro economic numbers over the weekend, including inflation, which rose above 5 percent to a two year high.

The numbers also showed buoyant industrial production and fixed asset investment.

Investors have been watching closely for any policy moves that would dampen demand in the world's top copper consumer.

The decision to raise banks' required reserves rather than interest rates on Friday means China's authorities have opted for a milder form of monetary tightening for now, suggesting they believe they are still well able to control price pressures.

(14/12) METALS-Copper hits record highs on China, fundamentals

December 14, 2010

Copper hit successive record highs on Monday, boosted by economic prospects for top consumer China, and supply concerns that could propel prices even higher.

Benchmark copper on the London Metal Exchange finished at $9,220, from $8,980 at the close on Friday. The metal used in power and construction earlier peaked at $9,235.25 a tonne.

Copper's gains also boosted other metals, with nickel and lead edging to one-month highs.
Investors have been watching closely for any policy moves that would dampen demand in the world's top copper consumer.

Import data from China, which last week showed strong numbers after a slump in October and the launch of physically-backed exchange-traded products (ETPs) on Friday have raised expectations for demand but also worries over potential price distortions.

(14/12) Authorities on alert as copper prices rise

December 14, 2010

opper are the highest price per pound of any metal that you can get,” Mr. Markt said. “Of course those are at a premium, but if there’s a pile of scraps they’ll take the whole thing because all metal is up.”

The Union Pacific Railroad Co. issues a warning to all city and county police departments whenever there’s an increase in metal prices, especially copper, said Mark Davis, director of corporate relations and media for Union Pacific northern region.

(13/12) METALS-LME copper hits record on China data; rate fears set aside

December 13, 2010

Copper prices rose almost 2
percent in Shanghai on Monday, dragging London to a record
high, on positive technical signals and strong data from China
over the weekend.

Chinese investors set aside the risk of Beijing tightening
monetary policy, sending the third-month contract SCFc3 to a
one-month high of 68,800 yuan a tonne, and lifting the London
Metal Exchange benchmark forward contract to a record
$9,138.50 a tonne.

three-month copper on the LME stood at
$9,114.25, up $134.25 from Friday's close. Shanghai copper
closed 1,160 yuan higher at 68,480 yuan.

(13/12) Chile Peso Gains to Highest Since 2008 on Record Copper Price

December 13, 2010

Chile’s peso rose to its strongest level since May 2008 as the price of copper, the nation’s main export, gained to a record.

The peso increased 0.2 percent to 475.90 per U.S. dollar at 12:41 p.m. New York time, from 476.95 yesterday, the strongest since May 26, 2008.

(13/12) Copper price hits record

December 13, 2010

Copper climbed to a record in London and advanced to a 31-month high in New York.

The increase came on concern that the US Federal Reserve may extend asset purchases to support the economy, driving the dollar lower and boosting the appeal of commodities as alternative investments.

The metal for three-month delivery on the London Metal Exchange rose as much as 0.7 percent to $9,075 a ton, surpassing the previous peak on Dec 7.

Copper on the Comex in New York gained to $4.15 a pound, the highest price since May 2008.

(13/12) Copper hits record high, supplies in focus

December 13, 2010

Copper touched a fresh record high on Thursday, as worries over tight supplies, offset persistent concerns about further monetary tightening efforts in top consumer China.

By 10:24 GMT, copper for three-month delivery on the London Metal Exchange traded at $9,041 a tonne from $9,015 at the close on Wednesday.

Prices of the metal used in power and construction, earlier hit a session high at $9,091, and have risen about 23% this year.

(13/12)Chilean Peso Rises for Second Week as Copper Prices Advance

December 13, 2010

Chile’s peso rose for a second week, its longest weekly streak since October, as the price of copper, Chile’s main export, rose.
Copper futures for March delivery rose 0.5 percent, to $4.1065 a pound at 1 p.m. on the Comex in New York. Yesterday, the metal climbed to $4.1545, the highest since May 2008.

(13/12) Copper Prices Climb to Record Close in New York as China Imports Rebound

December 13, 2010

Copper futures closed at a record high in New York after imports by China rebounded from the lowest level in a year.

Shipments of copper and products into China, the world’s largest user, rose 29 percent in November to 351,597 metric tons from October. Total imports in the 11 months ended Nov. 30 gained 0.7 percent to 3.95 million tons. Copper has jumped 43 percent since July 1, partly on demand from emerging markets.

Copper futures for March delivery rose 2.5 cents, or 0.6 percent, to close at $4.112 a pound at 1:33 p.m. on the Comex in New York, the highest ever. The price is up 2.8 percent this week.

Yesterday, the metal climbed to $4.1545, the highest since May 5, 2008, when it touched an intraday record of $4.2605.
Copper for delivery in three months rose $40, or 0.4 percent, to $8,990 a metric ton ($4.08 a pound) on the LME. Yesterday, the price rose to a record $9,091.

(13/12) Gold, copper prices hit record highs

December 13, 2010

Copper prices soared to an all-time peak at 9,091 dollars a tonne on Thursday as traders mulled the chance of the US Federal Reserve launching a fresh round of monetary stimulus.

Meanwhile copper "is firmer partially on the back of various forecasts highlighting next year's likely supply deficits".
By late Friday on the London Metal Exchange, copper for delivery in three months jumped to 9,030.50 dollars a tonne from 8,730 dollars a week earlier.

(13/12) LME copper prices hit record highs

December 13, 2010

copper price have ever reached at USD 8,940 per tonne in July 2008 currently, it has been soaring further to break USD 8,966 per tonne on November 11th 2010. Moreover, the copper has risen sharply these 2 days to USD 9,015 per tonne on December 9th to hit the record highs.
The copper price has soared sharply by 23% in this year, thus, analysts reminded that the risk of a dip has been increasing as well. Besides, China may raise the interest rates in accordance to the US quantitative easing monetary policy and the inflation. Since China is the main consumer of cooper, the copper prices may dip if China announces to raise the interest rates.

(13/11) Copper Gains in London Record, 31-month high in New York on easing Risk

December 13, 2010

Copper climbed to a record in London and advanced to a 31-month high in New York on concern the Federal Reserve may extend asset purchases to support the economy, driving the dollar lower and boosting the appeal of commodities as alternative invesmments.

The metal for three-month delivery rose as much as 0.6 percent to $9,066 a metric ton on the London Metal Exchange, surpassing the previous peak of $9,044 on Dec. 7. The contract was at $9,065 a ton by 10:31 a.m.
Copper on the Comex in New York gained to $4.1440 a pound, the highest price since May 2008, when it reached a record $4.2605.

(11/12) Copper at new high in futures trade on global cues

December 11, 2010

Buoyed by a firming trend in global markets and rising spot demand, copper futures prices rose by 0.50 per cent to trade at a new high of Rs 415.75 per kg.

At the Multi Commodity Exchange counter, copper delivery for April contract went up by Rs 2.05, or 0.50 per cent to trade at a new high of Rs 415.75 per kg, to clock a business turnover of six lots.

Similarly, the metal for delivery in February traded higher by Rs 2, or 0.48 per cent, to Rs 413.55 per kg, with a business turnover of six lots.

Analysts said rise in copper futures attributed to reports that the metal at the London Metal Exchange (LME) climbed to a record on concern that the US Federal Reserve may extend asset purchases to drive the economy. The lower dollar boosted the appeal of commodities as an alternative investment.

Further, shrink in copper's stockpiles by 30 per cent to 352,250 tonnes this year, the lowest level since October 2009 at the LME's warehouses also influenced prices, they said.

(11/12) LME LATEST - Metals falter in mid-afternoon trade

December 11, 2010

Copper, which traded as high as $9,091 earlier in the session, traded at $8,955, down $60. Tomorrow, ETF Securities will launch the industry’s first physically-backed base metal ETF, but the bullishness in response to this has manifested in higher spreads than outright prices, according to Standard Bank.

- “The impact of weak longs and weak shorts will likely continue to see volatile trading ahead of the weekend and the release of the latest Chinese economic data,” Leon Westgate, analyst at Standard Bank, said on Thursday. The proposed JP Morgan and Blackrock copper ETF’s are initially expected to have a combined holding in the region of 183,000 tonnes of metal.

- “Price-wise, we still would like to see a second day close above $8,966 (November 11 all-time high) today to confirm that we are in breakout territory. The question next becomes where exactly does next resistance lie, as there is nothing apparent on the charts.

(11/12) LME copper market and the dominant long

December 11, 2010

According to the LME there were dominant positions in the copper market on 28 occasions last year, most recently in December 2009. There are also currently dominant positions in the markets for primary aluminium, aluminium alloy, nickel, tin and zinc, according to the LME's most recent warrant banding report, covering ownership of warehouse warrants on Dec. 6, 2010. All the other markets continue to trade in a contango structure, suggesting there are no worries about meeting demands for delivery.

In calculating dominant positions, and managing them by applying the lending guidance, the LME aggregates all positions controlled by a member firm -- including positions held by affiliated companies, as well as warrants held on behalf of customers, for example as collateral for warrant financing deals.

The exchange automatically aggregates nearby positions (warrant holdings, as well as positions due for delivery within the next two business days) of companies in the same group. It will also aggregate positions of unconnected parties if the compliance department believes there is a common purpose, according to the most recent version of the lending guidance published by the LME (May 6, 2010).

If a firm or connected company lends money to a third party to enable them to buy and finance warrants, and takes the warrants as security for the loan, those warrants also count towards the calculation of a dominant position and the application of the guidance.

(11/12) Copper Advances in London on Chinese Import Data: LME Preview

December 11, 2010

Copper climbed in London after China’s imports of the metal rose for the first time in three months, fueling speculation that demand in the world’s largest consumer remains intact.

Copper imports by China, the world’s largest consumer, rose for the first time in three months, as some trading firms shipped in more material on bets domestic prices may rise more than those overseas.
Copper prices may jump 22 percent to $5 a pound within 24 months as supply dwindles amid rising demand, according to U.S. Global Investors Inc., which manages $3 billion in San Antonio.
Copper may rise next week as the first exchange-traded products in industrial metals heighten speculation of a metal shortage, a survey showed.

(10/12) LME OPEN - Metals drift in early trade, markets await Chinese data

December 11, 2010

Base metals opened not far off the previous day’s closes on Friday, while the dollar weakened and traders remained cautious ahead of the weekend.

“Given the economic climate and the continued need for stimulus in the West and the potential that the main driver of growth, i.e. China, is going to press the economic brakes (maybe as early as this weekend), we reckon there is downside risk for the metals even though their up trends remain strong,” FastMarkets’ William Adams said.

Copper traded as high as $9,028 on Friday while Chinese import and export figures boosted commodities but expectations of an interest rate rise from Beijing muted buying power. Analysts urge caution due to higher prices and an unfavourable arbitrage.

Market participants are awaiting the latest set of Chinese output and trade data that are due for release over the weekend.

On Thursday, copper traded as high as $9,091. LME copper inventories have shrunk 30 percent this year, on course for the first annual contraction since 2004, while stocks are currently at their lowest since October 2009.

Copper closed at $8,970, up $30, after breaching the $9,000 level earlier in the session.

(11/12) LME LATEST - Metals hold around highs in open-outcry sessions, copper near all-time peak

December 11, 2010

Base metals were trading around their highs during the open-outcry sessions, consolidating their latest advances as prices for nearly all metals remained locked in their bull trends. Better-than-expected Chinese trade figures offset news that country’s central bank will increase its reserve ratio by 50 basis points.
Copper moved to just $21 below Thursday's all-time high of $9,091 per tonne before settling at $9,050, up $110 from yesterday's close. Nearby spreads were tight ahead of Monday, with Dec/one day trading at $6.00 backwardation, Dec/Jan and Jan/Feb at premiums of $19 and $16 respectively. Nickel advanced to $23,837, up $237, while tin business at $26,100 was up $205.

(09/12) MCX Copper zooms on tight supply

December 09, 2010

Copper traded at record highs on prospects of tighter supplies in the coming days and hope of fresh stimulus being given to US economy. The assistance by Fed is expected to bring down the value of Dollar against the EURO hurting the selling potential. The buck was trading at 1.3358 against the EURO up 54 pips. The markets are already showing strength from the triggers of declines in inventory levels and rise of demand. On Tuesday LME stockpiles declined by 1000 tonne to 351375 tonnes. The stockpiles have declined by 30% so far this year.


US Federal Reserve Chairman Ben Bernanke told that the central bank could expand its new $600 billion quantitative easing program if the economy fails to revive as anticipated. MCX Copper is now trading at Rs. 407 per kg up by Rs. 8 or 2%. The markets have surpassed crucial sentimental level of Rs. 400 quite convincingly now with further rise the prices will expect to test Rs. 415 per kg. On COMEX the markets were comfortably trading above $ 4 at $ 4.1065 per lb up 0.9 cents. Sha

(09/12) METALS-LME copper hits record; dominant position encouraging specs

December 09, 2010

London copper futures hit a
record high on Thursday, while Shanghai futures volleyed more
than 3 percent, encouraged higher by the positive longer term
outlook, while aluminium was steady after a 3 percent rally in
the previous session, buoyed by a strike at South African
smelters.

Three-month copper on the London Metal Exchange
rose $60 to $9,075 a tonne. By 0741 GMT, prices had ticked
back to $9,035 from Wednesday's close at $9,015.
LME data shows a single party holds between 50 and 80
percent of the 350,000-odd tonnes of copper in LME warehouses.
The same data also shows dominant positions in primary
aluminium, aluminium alloys, nickel, lead, zinc and tin.
Shanghai 's benchmark third month copper contract SCFc3
rose 2.6 percent to 67,050 yuan ($10,062). Prices earlier
touched a one-month high of 67,590 yuan.

London copper is currently trading some 3,300 yuan a tonne
above the Shanghai contract, allowing for Chinese VAT.

(09/12) Copper Rises to Record in London on Fed Speculation: LME Preview

December 09, 2010

Copper climbed to a record in London and advanced to a 31-month high in New York on speculation the Federal Reserve may extend asset purchases to support the economy.

Copper prices may jump 22 percent to $5 a pound within 24 months as supply dwindles amid rising demand, according to U.S. Global Investors Inc.,

(09/12) LME MORNING – Chinese cooling tactics fail to take shine off base metals

December 09, 2010

Base metals rallied alongside global equities on Thursday as a winning combination of rising investor optimism and a spike in US treasury yields prompted a shift to riskier assets.

The bulls have fired on all cylinders in recent sessions, with copper now almost $1,000 higher than its close on November 26 - the pending launch of metals exchange-traded funds (ETCs), tightness in the copper spread and a slightly weaker dollar have attracted speculative interest.

But the rally could be damaged if there is any more brouhaha about interest rate rises in China.

“In the near term, the prospects for ETCs and the tightness around the Dec date may well lead to further gains in copper and the others may follow to a lesser extent,” William Adams, analyst at FastMarkets, said.

“We would, however, remain wary of getting too comfortable with these high prices mainly because Chinese monetary tightening could change underlying sentiment,” he warned.
Copper traded at $9,027, up $12, after hitting a peak of $9,091 earlier in the session. Stocks continued their downward trend, falling by 800 to 349,450 tonnes, while cancelled warrants also fell to 24,675.

Fresh estimates suggest LME warehouse stocks may drop to an all-time low of less than one week’s usage.

Recent reports indicate that JP Morgan owns a huge percentage of the open interest for copper on both the Comex and the LME, although the bank insists these are held for clients.

Other market observers have cautioned against jumping to the conclusion that JP Morgan is the dominant holder of copper, with other well known physical traders also seen as candidates.

(09/12) Copper Supported By Declines In Dollar

December 09, 2010

Copper remained supportive by the declines of Dollar seen in the mid day trades on OTC markets. Dollar is now seen at 1.320 against the EURO, down 48 pips. The markets have taken cues form the fact that some of the big houses are trying to start ETFs of Copper.

Deficits in the red metal already created enough sponge for prices to jump. Copper used in construction and electrical activity has gyrated by 40% in the last one year. International Copper Study Group in its report mentioned the amount of deficit for August was 120000 tonnes. The markets are expected to show a deficit of 400000 tonnes in 2011.

On Thursday, MCX Copper tested an all time high of Rs. 415.4 per kg and is now at Rs. 414.6 per kg, on account of fresh buying.

LME inventories continued to trim down with declines of 800 tonnes registered today. Copper inventories are now at 349450 tonnes.

In a important news, China Association of Automobile Manufacturers said that in November 2010, automobile production and sales situation were better, the chain showed faster growth, yield was significantly higher. During January to November, car sales were more than 16 million.

In November, car sales were up by 26.11%, of which production was 1.3645 million. Passenger cars showed growth of 13.83%. Commercial production was 390300, a growth of 13.12%. From Jan-Nov 2010, total car sales were 16400100, an increase of 33.71%. Of which: Passenger car sales were up by 28.96%

(09/12) Lopsided Trading In Copper

December 09, 2010

Copper prices opened on a subdued manner and fell below Rs. 400 on MCX before minor recovery. It seems that today's trading will remain lopsided and Copper will be testing the wits of traders.

Selling was seen in major metals markets in opening quotes. Buyers in Shanghai and COMEX contracts relaxed a bit. COMEX Copper is seen trading at $ 4.040 per lb, down from $ 4.049 cents on Tuesday.

MCX Copper tested an all time high of Rs. 408.95 per kg on Tuesday and closed at Rs. 402 per kg, on account of profit booking in the end of the day. The metal again corrected towards Rs. 398.4 per kg at the opening session on Wednesday. Currently the prices quote at Rs. 403 per kg, up Rs. 1.

The fundamentals are still intact suggesting some serious deficits in Copper for 2011. The demand is still stable yet the moves of currency will be determinant for the value in coming days.

Dollar now quotes at 1.3237 against EURO up 22 pips. The proposed measures by US president on tax cuts and unemployment benefits steadied ship of Dollar. Meanwhile, Ireland will vote for austerity measures for the year 2011 that is expected to slow down the buying in EURO.

China's consumer price index (CPI), a major gauge of inflation, is expected to rise 3.2 pct in 2010, a leading government think tank reported on Tuesday.

The rise of CPI if registered will further aggravate the noise of monetary tightening in China and will have a direct impact on the buying that was seen in metals like Copper.

(09/12) METALS-Copper back near record highs, ETPs eyed

December 09, 2010

Copper prices turned positive late
on Wednesday, to keep within touching distance of record highs,
as worries over tight supplies offset a firmer dollar and
lingering concerns on rate hikes in China.

Three-month copper on the London Metal Exchange CMCU3
closed Wednesday at $9,015 a tonne. The metal used in power and
construction hit a record high $9,044 on Tuesday before dipping
back to end the day at $8,880.
In general stocks of copper at LME warehouses have declined
since February, indicating a pick-up in demand and against a
backdrop of tight supply. <0#LME-STOCKS>

The latest data showed stocks fell 1,125 tonnes to 350,250
tonnes, on their way to the biggest annual decline in six years.

Traders and analysts saw room for more correction in prices
in the short term after Tuesday's rally, given broader worries
about the euro zone's ability to keep debt woes from spreading.

(09/12) Copper May Jump 22% to $5 as Supplies Stagnate, U.S. Global Investors Says

December 09, 2010

Copper prices may jump 22 percent to $5 a pound within 24 months as supply dwindles amid rising demand, according to U.S. Global Investors Inc., which manages $3 billion in San Antonio.
Before today, the metal surged 43 percent since July 1 as global inventories shrank to the lowest since October 2009. Banks from Goldman Sachs Group Inc. to Barclays Capital are predicting higher prices as miners struggle to keep up with rising demand from China, the world’s biggest user.

Yesterday, copper futures for delivery in March rose 1.3 percent to settle at $4.1005 a pound on the Comex in New York, the highest closing price ever.

(09/12) Copper price hits new record high

December 09, 2010

The copper selling price has hit a new on the London Metal Exchange of over US$9000/t, exceeding the previous mid-November high of US$8483/t.

The cost of copper has undergone substantial changes over the past few years. The raw material price fell dramatically at the start of the economic crisis, before rising to a record high in November this year.
“It is a commodity just like oil, affected by political and economic factors. Prices of commodities and raw materials always fluctuate,” said Al Habtoor-Specon MD Thrasos Thrasyvoulou.

“The demand from China for this commodity is probably the largest cause of the volatility, but it is also affected by the dollar exchange rate, economic states and trends, and the fact that for the first time in over five years the stocks of copper have been reduced by over 30%,” said Darren Harper, engineering and business development manager at Prime Electrical Manufacturing and Apex Wiring Solutions.

Codelco, the world’s largest copper producer, expects prices to remain at record levels in 2011 as demand rises, CEO Diego Hernandez said. "The copper market probably will be in deficit by about half a million tons in 2011 as demand gains between 4% and 5%.

(09/12) Copper Keeps Gaining On Strong Liquidity And Prospects Of Deficits

December 09, 2010

Copper traded at record highs on prospects of tighter supplies in the coming days and hope of fresh stimulus being given to US economy. The assistance by Fed is expected to bring down the value of Dollar against the EURO, hurting the selling potential. The buck was trading at 1.3358 against the EURO, up 54 pips.

The markets are already showing strength from the triggers of declines in inventory levels and rise of demand. On Tuesday, LME stockpiles declined by 1000 tonne to 351375 tonnes. The stockpiles have declined by 30% so far this year.

US Federal Reserve Chairman Ben Bernanke told that the central bank could expand its new $600 billion quantitative easing program if the economy fails to revive as anticipated.

MCX Copper is now trading at Rs. 407 per kg, up by Rs. 8 or 2%. The markets have surpassed crucial sentimental level of Rs. 400 quite convincingly now; with further rise the prices will expect to test Rs. 415 per kg.

On COMEX the markets were comfortably trading above $ 4 at $ 4.1065 per lb, up 0.9 cents. Shanghai Copper March contract gained by 1080 yuan per tonne to 66850 yuan per tonne.

(08/12) LME LATEST - Copper bounces off $9,000 in heavy volumes

December 08, 2010

Base metals retreated from their highs on Tuesday afternoon after a high-volume, volatile morning in which copper climbed above the psychological $9,000 per tonne level.

- Copper was still up $159 at $8,929, having spiked to a fresh all-time high of $9,044 earlier today. “Two closes above the previous high of $8966 will lead to a breakout on the charts and would suggest that prices could push even higher, so the next few days will be critical,” MF Global analyst Ed Meir said.

- Volumes were heavy, with well over 20,000 lots of copper changing hands by 15:45 London time. Open interest has also continued to set records, with current levels exceeding the highs of early November

- “The trigger for copper’s move appeared to be technical in nature, with the ensuing rally snowballing throughout the morning,” Standard Bank’s Leon Westgate said, adding that concerns over the potential for the Chinese to raise interest rates may boost risk aversion ahead of the weekend.

(08/12) Copper eases from record as traders cash in on six-day rally

December 08, 2010

Copper slipped from a record above $9,000 (U.S.) a tonne in London Tuesday, as euphoria over a deal to extend U.S. tax breaks faded, prompting investors to cash in on a six-day rally that boosted values by nearly 11 per cent.

Copper led a broad-based charge in the base metals complex, after news that U.S. President Barack Obama reached an agreement to extend the Bush-era tax cuts for two years.

The deal was seen as a stimulus for the economy, boosting appetite for global stocks, commodities and riskier assets.

But copper’s rally to all-time peaks turned out to be short-lived as the euro relinquished gains against the dollar, making metals priced in the U.S. currency less attractive.

“A lot of it is buy the rumour, sell the news of the tax bill going forward,” said Bill O’Neill, partner at LOGIC Advisors in Upper Saddle River, N.J.

Still, copper kept some of its gains even as other commodity markets such as gold and crude oil turned lower, as supply-side concerns mounted.

In a move seen supporting prices, ETF Securities said it would launch the first exchange-traded commodity products backed by industrial metals on Dec. 10.

A copper ETF could slice 185,000 tonnes away from a market already seen in a 400,000-tonne deficit next year.

(08/12) Copper, silver, gold touch all-time highs; oil surges

December 08, 2010

Commodities tested multi-year and new highs on Tuesday with markets anticipating a further debasement of currencies as the US Federal Reserve hinted at continued easing of monetary policy.

(08/12) Copper Falls in London as Investors Secure Gains: LME Preview

December 08, 2010

Copper declined in London as some investors sold the metal to lock-in gains following its climb to an all-time high.

(08/12) LME OPEN - Metals settle back, copper eases on reaction to record peak

December 08, 2010

Base metals eased back during early Wednesday LME trading, against a backdrop of a steadier dollar, while the trend was also due to a downside reaction in the trend-setting copper market, where prices dropped back after hitting all-time peaks above $9,000 on Tuesday.

At one stage copper was nearly $340 or 3.7 percent down from its new peak of $9,044, before prices settled at $8,780, a $100 loss from the previous close. Other metals also lost ground from what were three to four week highs, although declines were not so steep.

Analysts said the market had perhaps overshot in the previous session, with the adrenalin boost to sentiment provided by President Obama's extension of tax cuts and news that some physically backed ETCs (exchange-traded commodities), including copper, will start trading on Friday.

(08/12) Arizona producers benefit as copper price hits record high

December 08, 2010

Copper prices reached a record high today, closing at about $4.09 a pound on the London Metal Exchange, and continuing a rally that has lasted well over a year.

The price rose about 2.75 percent from Monday, gaining about 11 cents a pound on the London exchange, considered the hub of global metals trading.

Metals analysts and other experts have said they believe copper prices have risen due to a variety of factors: continued growth in Chinese demand, prospects for U.S. economic recovery and the inability of copper supplies to keep up with demand.

Prices are generally expected to keep rising in at least the near future, to the benefit of major Arizona copper.