(02/04) METALS-Copper ends 1st quarter down on slack China demand

April 02, 2011

Copper closed slightly higher on
Thursday but ended the first quarter of 2011 with a 2.4 percent quarterly loss,
its first such decline since the second quarter of 2010, as concerns about
softer Chinese demand and rising warehouse stocks weighed on sentiment.
Traders cited book squaring and the weak dollar for Thursday's higher
close. For the quarter, copper diverged from the broader base metals complex,
with tin CMSN3 rallying 18.3 percent, aluminium CMAL3 up 7.2 percent, and
lead CMPB3 and nickel CMNI3 each about 5 percent firmer.
Copper prices are off more than 7 percent from their record highs hit last
month at $10,190 per tonne in London and $4.6575 per lb in New York. With
sustained softness in Chinese buying and a buildup in London warehouse stocks,
prices are expected to remain weak in the near-term.
London Metal Exchange (LME) copper for three-months delivery CMCU3 rose
$49 for the day to end at $9,430 a tonne. For the quarter, that was down 2.4
percent from the final three months of 2010, its first quarterly loss since
June.
COMEX May copper HGK1 settled up 3.35 cents at $4.3075 per lb. It
finished the quarter down 3 percent.