Copper rises for fourth straight day

Prices rise as dollar continues to stay weak

Copper prices ended higher once again on Wednesday, 18 November, 2009 at Comex. Prices rose to its highest levels in fourteen months as the dollar continued to hover in its weak levels.

At USA, copper futures for March delivery ended higher by 0.25cents (0.0.6%) to 3.1355 a pound. Earlier on Monday, it had touched a high of $3.142.

On the London Metal Exchange, copper for delivery in three months ended higher by $64 (0.8%) at $6,880 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

In the currency market on Wednesday, the dollar continued to remain at its weak levels. The dollar index, which measures the strength of dollar against basket of six other currencies, fell by almost 0.5%.

The Commerce Department in US reported today that housing starts in US fell a sharp 10.6% in October. New construction on housing units dropped to a seasonally adjusted annual rate of 529,000, the lowest level since April. The 10.6% drop was the biggest percentage decline for starts since January. Both single-family homes and multifamily units declined last month.

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

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

At the MCX, copper for November delivery closed at Rs 317/Kg. The closing price was Rs 0.6/Kg (0.19%) higher than previous closing price. Prices rose to a high of Rs 322.8/ Kg and fell to a low of Rs 315.65/Kg during the day's trading.

Among other metals traded in the LME on Wednesday, lead added 0.6% to $2,399 a ton and zinc gained 2.1% to end at $2,289 a ton. Nickel gained 0.9% to end at $17,050. Aluminium gained 1.6% to $2,066 a ton.