Copper declines as Greek worries hit sentiment

Print this page Posted on : 03-23-2010 by recycleinme.com

London, March 22

Copper prices fell about 1 per cent on Monday, down for a third consecutive session, as ongoing concern about Greece’s debt dented risk appetite and knocked the euro against the dollar.

Copper for three- month’s delivery on the London Metal Exchange traded at $ 7,365 a tonne at 10: 40 GMT from a close of $ 7,435 on Friday.

The euro hit a three- week low against the dollar, which rose broadly, making dollarpriced metals costlier for non- US investors.

CHINESE IMPORTS

Offering some support, though, was data that showed China’s implied demand for copper rose in February, indicating the country’s appetite for the metal remains strong.

Demand from China helped copper surge 140 per cent last year, but investors worry that the world’s top copper consumer will slow buying this year as it tries to rein in red- hot growth.

Investors still lamented a weak pick- up in Western demand, which lagged behind the Asian rate of consumption. Investors will look also look at the Chicago Fed National Activity Index for February at 12: 30 GMT.

Aluminium traded at $ 2,237 compared with $ 2,258 and zinc was at $ 2,255 from $ 2,295. Lead was at $ 2,178 from $ 2,200. The battery material hit a session low of $ 2,168.25, its lowest since March 5. Tin traded at $ 17,500 from $ 17,650 and nickel was at $ 22,077 from $ 22,450.

Not only is the Greek situation far from over, there are likely more skeletons in the EU’s loan closet,” MF Global said in a note.

Source : Business Line