Copper drops to 18-month low as poor China, Germany PMI weigh

                   Copper futures fell to the lowest level since October 2011 during European morning hours on Tuesday, as weak manufacturing data out of China and Germany added to concerns over the global economic outlook.

Copper is sensitive to the economic outlook because of its widespread uses in construction and manufacturing.

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On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.082 a pound during European morning trade, down 1.6% on the day.

New York-traded copper prices fell by as much as 2% earlier in the session to hit a daily low of USD3.059 a pound, the weakest level since October 5, 2011.

Copper futures at lowest since October 2011 on demand concerns

            Copper futures fell to the lowest level since October 2011 during European morning hours on Thursday, as global growth concerns continued to weigh on the industrial metal.

Copper is sensitive to the economic outlook because of its widespread uses in construction and manufacturing.

On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.153 a pound during European morning trade, down 1.1% on the day.

New York-traded copper prices fell by as much as 3.5% earlier in the session to hit a daily low of USD3.065 a pound, the weakest level since October 20, 2011.

Concerns over the global economic outlook intensified earlier in the week after the International Monetary Fund cut its 2013 forecast for global growth to 3.3%, down from its January projection of 3.5%. 

Copper futures fall to 8-month low ahead of ECB, U.S. jobs data

    Copper futures fell to the lowest level since early August during European morning hours on Thursday, as a broadly stronger U.S. dollar dampened the appeal of the industrial metal.

Investors now looked ahead to the European Central Bank’s policy decision due later in the day, as well as Friday’s U.S. jobs data for trading cues.

On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.323 a pound during European morning trade, down 0.3% on the day.

New York-traded copper prices fell by as much as 0.8% earlier in the session to hit a daily low of USD3.306 a pound, the weakest level since August 3.

Copper prices struggled for upside traction due to a stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.7% to trade at 83.47, the strongest level since August.

Market players now looked ahead to Friday’s highly-anticipated U.S. monthly nonfarm payrolls report to further asses the strength of the country’s economy.

The U.S. is second behind China in global copper demand.

Investors also awaited the European Central Bank’s policy decision due later in the day, as well as comments by ECB President Mario Draghi for further hints on the future of its monetary policy.

Elsewhere on the Comex, gold for June delivery dipped 0.5% to trade at USD1,545.75 a troy ounce, while silver for May delivery was flat to trade at USD26.79 a troy ounce.

Gold and silver remained under pressure as investors were hesitant to enter the precious metals market amid a weak technical outlook.

Gold prices were trading at an 11-month low, while silver futures fell to the lowest since July.

Copper futures plunge to 4-month low on Cyprus rescue deal

              Copper futures came under heavy selling pressure during European morning hours on Monday, falling to the lowest level since November as worries over a controversial bailout deal for Cyprus weighed on appetite for riskier assets.

Copper prices also struggled for upside traction due to a stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.6% to trade at 82.89.

On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.443 a pound during European morning trade, down 2.2% on the day.

Copper Advances on China Autos, U.S. Jobs: Commodities at Close

The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 0.1 percent to settle at 649.62 at 3:59 p.m. New York time, led by industrial metals.

The UBS Bloomberg CMCI gauge of 26 prices advanced 0.3 percent to 1,551.55.

BASE METALS

Copper rose to the highest in more than a week as signs of strength in Chinese auto sales and gains in the U.S. labor market brightened demand prospects for industrial metals.

Wholesale deliveries of cars, multipurpose and sport- utility vehicles rose 20 percent in the two months ended Feb. 28 in the strongest start since 2010, according to a Chinese industry group. U.S. job openings climbed in January, and confidence among small businesses rose in February for a third month, reports showed.

On the Comex in New York, copper futures for May delivery advanced 1.1 percent to $3.5545 a pound. Earlier, the price reached $3.576, the highest for a most-active contract since Feb. 28.

On the London Metal Exchange, copper for delivery in three months gained 0.9 percent to $7,830 a metric ton ($3.55 a pound). Zinc, nickel, tin, aluminum and lead also rose.

PRECIOUS METALS

Gold rose, capping the longest rally in six months, as Europe’s slumping economy increased speculation that central banks will expand stimulus measures, boosting demand for the metal as a store of value.

On the Comex, gold futures for April delivery climbed 0.9 percent to $1,591.70 an ounce. The price climbed for the fourth straight session, the longest rally since Aug 21.

Silver futures for May delivery rose 1.1 percent to $29.171 an ounce.

On the New York Mercantile Exchange, platinum futures for April delivery fell 0.4 percent to $1,595 an ounce.

Palladium futures for June delivery dropped 0.5 percent to $775.50 an ounce.

CRUDE OIL

Crude oil advanced as the euro trimmed losses against the dollar and the Organization of Petroleum Exporting Countries increased production.

On the Nymex, oil futures for April delivery rose 0.5 percent to $92.54 a barrel.

Brent oil for April settlement dropped 0.5 percent to $109.65 a barrel on the London-based ICE Futures Europe exchange.

OAO Lukoil’s Litasco bought a cargo of Forties crude at the lowest differential in almost 11 months. Statoil ASA bid for Russian Urals blend at the highest spread in almost a month.

Daily exports of the 12 main grades of North Sea crude for loading in April will increase 8 percent to the highest in 10 months, programs obtained by Bloomberg News showed.

OIL PRODUCTS

Gasoline was little changed following wide price swings linked to volatile biofuel-credit prices.

On the Nymex, gasoline futures for April delivery slid 0.1 percent to $3.1502 a gallon. The price rose as much as 1.2 percent and dropped as much as 1.6 percent.

Heating-oil futures for April delivery fell 0.7 percent to $2.9484 a gallon.

Silver’s Industrial Demand: The Best Is Yet to Come(financialsense)

                                        As the price of silver searches for a bottom, and as many wonder if the precious metals’ bull is over, it is worth re-examining the other source of demand for silver: namely, from industry. This is also important if in fact the world is moving toward some kind of recovery, where you would think the price of silver would catch a bid from industrial users.

In recent years, the rise of the silver price has come almost exclusively from investment, or monetary demand (an important reminder for anyone who claims silver isn’t money, by the way.) But there have been periods of time when silver’s industrial demand drove the price of the white metal higher. In the period between roughly 1900 and 1970, industrial demand for silver increased over 4 times- from 100 million to 400 million ounces. The industrial revolution in silver was due largely to the urbanization and technological revolutions taking place in twentieth century life. Whether we are talking about indoor plumbing, electricity, cars, or aerospace technology, silver proved to be an indispensable metal. One of the largest industrial uses for silver came from photography, invented by Frenchmen Nicephore Niecpe in 1822, and made more popular by Daguerre in the 1840s. By the twentieth century millions of ounces of silver were needed just for photography. But in terms of silver demand, this was just the tip of the iceberg.

Rio’s Mongolia Copper Dream Awakens 20-Year-Old Nightmare

Rio Tinto Group (RIO)’s Mongolia copper and gold mine looks a dream location sitting next toChina, the biggest market. Yet, Mongolia’s bid for more control of the project draws comparison with a Rio mine that went badly wrong.

Mongolia’s government is ratcheting up criticism of Rio’s management of the $6.6 billion project, the landlocked country’s single biggest investment. Lawmakers have argued for a bigger share of profit, while President Tsakhia Elbegdorj wants more management control. He faces elections in June with a fifth of the nation’s 3 million people in poverty despite world-beating economic growth of 17.3 percent in 2011.

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“In Bougainville the community felt, rightly or wrongly, they weren’t compensated adequately for the various impacts of mining they were having to absorb,” said Jeffrey Neilson, a senior lecturer in economic geography at the University of Sydney. Governments in emerging economies “have to be seen to be taking a strong stance and making sure that the benefits of their resource wealth are being shared.”Rio has refused government overtures to rewrite the agreement on the mine known as Oyu Tolgoi, raising tensions and comparisons with another Rio copper mine more than two decades ago. That project known as Panguna on the island of Bougainville in Papua New Guinea was shut by local protests and is still the subject of a U.S. court case.

Mining companies also need to consider wealth distribution in countries where they invest as a matter of course, said Michael Bush, who now heads credit research at National AustraliaBank Ltd. and formerly worked as a geologist at Triad Minerals Inc.

‘Fingers Burned’

At Panguna, which was closed in 1989 after protests turned violent, the company “got its fingers burned more than many” of its peers, Bush said.

The unrest at Panguna, led by Francis Ona a former Bougainville mine worker, revitalized an independence movement on the island. That prompted the Papua New Guinea government to declare a state of emergency and send in troops in a conflict in which thousands died.

Bougainville landowners later filed a U.S. lawsuit alleging Rio conspired with the PNG government in acts of genocide, human rights abuses and environmental damage. Rio lost anappeal to have the lawsuit thrown out on Oct. 25, 2011. In November the same year, Rio sought to appeal the ruling to the U.S. Supreme Court. No decision has been made, according to the court’s website.

‘Serious Risks’

The company has argued that as the case has no connection whatsoever to the

Copper futures edge higher on global recovery hopes; U.S. data eyed

Copper futures edged higher to hit a two-day high on Tuesday, as mounting optimism over the health of the global economy continued to support appetite for growth-linked assets.

Copper is sensitive to the economic outlook because of its widespread uses in construction and manufacturing.

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.673 a pound during European morning trade, up 0.3% on the day.

New York-traded copper prices rose by as much as 0.75% earlier in the day to hit a session high of USD3.691 a pound.

Copper prices rose Monday after data showed that U.S. durable goods orders rose more-than-expected in December, jumping 4.6% compared to expectations for a 1.8% rise.

Market participants now looked ahead to Wednesday’s preliminary data on U.S. fourth quarter economic growth, as well as Friday’s U.S. nonfarm payrolls report, as markets attempt to gauge the strength of the U.S. economic recovery.

The Federal Reserve’s policy-setting meeting on Wednesday will also be in focus, as markets search for clues over the future of the central bank’s ultra-loose monetary policy.

Also, China will release its official manufacturing data for January at the end of the week, providing investors with another chance to see whether the recovery in the world’s second largest economy remains on track.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Elsewhere on the Comex, gold for April delivery rose 0.5% to trade at USD1,662.85 a troy ounce, while silver for March delivery climbed 0.95% to trade at USD31.07 a troy ounce.

Source : INVESTING.COM

Copper futures drop as profit taking, U.S. debt concerns weigh

               Copper futures declined during European morning hours on Monday, as focus remained squarely on the U.S. economic outlook and how U.S. lawmakers will deal with the upcoming debt ceiling debate.

Some profit taking also contributed to losses, after New York-traded copper prices rallied to the highest level since mid-October last week.

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.666 a pound during European morning trade, down 0.75% on the day.

New York-traded copper prices fell by as much as 1% earlier in the session to hit a daily low of USD3.657 a pound. Futures rose to USD3.758 on January 3, the strongest level since October 18.

Copper futures rallied last week after U.S. lawmakers passed a last-minute bill to avoid the fiscal cliff, a series of looming tax increases and spending cuts that could have pushed the U.S. economy back into a recession.

Focus was expected to remain on the U.S. economy, as investors remained jittery over the