COMMODITIES-METALS: Copper Soars Through 3,000-Dollar Mark
LONDON, Dic 30 (IPS) - Base metal markets had a busy post- Christmas market with copper soaring through the psychologically- important 3,000 dollars a tonne barrier for three-month basis.
The London Metal Exchange's flagship copper contract moved up to within a whisker of the 3,000-dollar mark in thin trading and short covering on Wednesday.
"Everyone is expecting an extended bull run for copper and they do not want to be caught short," said a trader.
Wednesday's close saw the red metal at 3,014.5 dollars a tonne for cash, 2,989.5 dollars a tonne for three-month delivery.
By the next day's close copper had risen comfortably and smashed through resistance to rest at 3,016.5 dollars a tonne, 3,002.5 dollars a tonne for three-month.
"This is an important stage for copper as now it is free to move within a higher range and this could be start of a major upward price hike," said sources.
Copper is used in wiring and electronic goods and is an important indicator of the direction of all base metals, which tend to follow it in price terms.
This Friday evening it ended well-strengthened at 3,040 dollars a tonne for cash, 3,014.5 dollars a tonne for three-month. Aluminium reacted to the strength in copper by rising in tandem and edging up on the London Metal Exchange.
Wednesday's bell saw the light metal end at 1,936 dollars a tonne, 1,965.5 dollars a tonne for three-month basis. Yesterday's close found aluminium at 1,955.5 dollars a tonne, 1981.5 dollars a tonne for three-month. It closed the year down at 1,952 dollars a tonne, 1980.5 dollars a tonne for three- month metal.
Again, thin conditions allowed prices to move up rapidly without much resistance. Zinc ended Wednesday evening in London at 1,125 dollars a tonne, 1,152.5 dollars a tonne for three-month. Thursday's close was 1,334 dollars a tonne, 1,160.5 dollars a tonne for three-month metal.
Today, it closed out the year at 1,134.5 dollars a tonne, 1,159.5 dollars a tonne for three-month basis. Lead ended Wednesday at 644 dollars a tonne, 662.5 dollars a tonne for three-month. Thursday, it settled at 649.50 dollars a tonne for three-month.
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