Copper ended lower on Friday and extended a reversal from earlier 15 month highs in after-hours business, as a much better than forecast U.S jobs report strengthened the dollar at the expense of metals.
US employers cut a fewer than expected 11,000 jobs in November, the smallest decline since the start of the recession in December 2007, government data showed on Friday, reinforcing optimism for a more rapid economic recovery.
The dollar is influential on metals prices on a short term trading perspective and the dollar is outweighed by investment funding and strategic reserve buying.
The Commerce Department also said that US factory orders rose 0.6%in October.
The dollar is influential on metals prices on a short term trading perspective and the dollar is outweighed by investment funding and strategic reserve buying.
Factors that could help to provide an upside to base metals in the short term
1. Expansion in manufacturing activity in the US in November for a fourth straight month
2. China’s manufacturing expanded at the fastest pace since April 2004. The purchasing managers’ index rose a seasonally adjusted 55.7 from 55.4.
3. China’s GDP is expected to expand 10.5% this quarter.
4. Weakness in the dollar could make base metals look attractive for holders of other currencies.
London Metal Exchange Rates
Cash Buyer
| Product | 26-Nov | 03-Dec | Change | % |
| Zinc | 2242 | 2376 | 134 | 6% |
| Nickel | 16770 | 16075 | -695 | -4% |
| Tin | 15020 | 15125 | 105 | 1% |
| Aluminium | 2009 | 2113 | 104 | 5% |
| Copper | 6904 | 7071 | 167 | 2% |
Change is on December 3rd as compared to November 26th 2009
In USD per tonne
1. Zinc
Zinc ended at USD 2,368 a tonne on Friday.
London Metal Exchange Rates
Cash Buyer
| 26-Nov | 30-Nov | 01-Dec | 02-Dec | 03-Dec |
| 2242 | 2226 | 2303 | 2374 | 2376 |
In USD per tonne
| Date | Rate | Period | Change |
| 03-Dec | 2376 | | |
| 26-Nov | 2242 | WoW | 5.98% |
| 03-Nov | 2145 | MoM | 10.75% |
| 03-Sep | 1881 | QoQ | 26.29% |
| 03-Dec'08 | 1140 | YoY | 108.38% |
In USD per tonne
2. Nickel
Nickel ended at USD 16,000 per tonne on Friday.
London Metal Exchange Rates
Cash Buyer
| 26-Nov | 30-Nov | 01-Dec | 02-Dec | 03-Dec |
| 16770 | 16025 | 16260 | 16375 | 16075 |
In USD per tonne
| Date | Rate | Period | Change |
| 03-Dec | 16075 | | |
| 26-Nov | 16770 | WoW | -4.14% |
| 03-Nov | 17800 | MoM | -9.69% |
| 03-Sep | 18275 | QoQ | -12.04% |
| 03-Dec'08 | 9250 | YoY | 73.78% |
In USD per tonne
3. Tin
Tin was last bid at USD 15,270 on Friday.
London Metal Exchange Rates
Cash Buyer
| 26-Nov | 30-Nov | 01-Dec | 02-Dec | 03-Dec |
| 15020 | 14790 | 14950 | 15045 | 15125 |
In USD per tonne
| Date | Rate | Period | Change |
| 03-Dec | 15125 | | |
| 26-Nov | 15020 | WoW | 0.70% |
| 03-Nov | 14695 | MoM | 2.93% |
| 03-Sep | 14605 | QoQ | 3.56% |
| 03-Dec'08 | 11895 | YoY | 27.15% |
In USD per tonne
4. Aluminium
Aluminum ended at USD 2,146 a tonne on Friday, within a whisker of the 13 month high.
LME stocks rose by 1,025 tonnes to remain near record highs above 4.5 million tonnes. Most of the stock is tied up in financing deals, however, so it has a limited ability to weigh on prices.
Elsewhere, metals analysts downplayed the immediate impact on aluminum prices of an attack on Guinea's junta leader. The West African country is the world's top exporter of the aluminum ore bauxite.
London Metal Exchange Rates
Cash Buyer
| 26-Nov | 30-Nov | 01-Dec | 02-Dec | 03-Dec |
| 2009 | 2006 | 2044 | 2102 | 2113 |
In USD per tonne
| Date | Rate | Period | Change |
| 03-Dec | 2113 | | |
| 26-Nov | 2009 | WoW | 5.18% |
| 03-Nov | 1869 | MoM | 13.06% |
| 03-Sep | 1825 | QoQ | 15.78% |
| 03-Dec'08 | 1586 | YoY | 33.23% |
In USD per tonne
But the pint to be noted is that premiums for physical aluminium are rising in Europe as much of the record high inventory in London Metal Exchange warehouses is tied up in financing deals that are not likely to suddenly be unwound.
5. Copper
Copper for March delivery on the New York Mercantile Exchange's COMEX division shed 0.75 cent to settle at $3.2375 a lb, after dealing between $3.1985 and $3.2750, which marked the highest level for the benchmark contract since late August 2008. In after-hours activity, the selling momentum picked up pace and pulled the contract back down below $3.20 a lb.
On the London Metal Exchange (LME), copper for three months delivery ended down $40 at $7,040 a tonne, after hitting a session peak at $7,170 earlier, a level not seen since Sept. 23, 2008.
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London Metal Exchange Rates
Cash Buyer
| 26-Nov | 30-Nov | 01-Dec | 02-Dec | 03-Dec |
| 6904 | 6814 | 6985 | 7055 | 7071 |
In USD per tonne
| Date | Rate | Period | Change |
| 03-Dec | 7071 | | |
| 26-Nov | 6904 | WoW | 2.41% |
| 03-Nov | 6395 | MoM | 10.56% |
| 03-Sep | 6279 | QoQ | 12.61% |
| 03-Dec'08 | 3422 | YoY | 106.62% |
In USD per tonne
But as a sign that fundamentals remain weak, LME inventories climbed 675 tonnes to 446,075 tonnes, the highest since April.
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