This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Copper Prices Pause on Greece, Fed

NEW YORK ( TheStreet) -- Copper futures showed little reaction to news that Greece had passed a vote of confidence ahead of an expected bailout.

According to Adam Grimes, director of technical investments at Waverly Advisors, the trading volume for copper futures is about 80% of average trading volume, a bit lower than expected for a normally light season for commodities.

Copper on the London Metals Exchange was floating around $9,027 per ton, or $4.10 per pound earlier this morning. Yesterday's three-month copper contracts on the LME settled higher at $4.11 per pound upon speculation that the Greek prime minister would receive a vote of confidence.

The euro was weakening against the greenback this morning by 0.1%, having previously priced in the anticipated good news from Greece. The dollar was losing 0.1% compared to a basket of currencies.

On the Comex this morning, July copper futures were essentially flat at $4.08 per pound. Copper settled at $4.09 per pound at the end of Tuesday's session.

July futures for copper on the Shanghai Metals Exchange finished at $4.76 yesterday.

While the copper market looks "quiet and boring" right now, it's during these times that traders are paying attention, said Grimes, who applies quantitative methodology in futures trading and holds a short position in copper. "Copper is sitting on the edge of a cliff. A very small downward movement could trigger further downside. Overall, we're cautious on our position in copper."

Further problems plagued copper production in Codelco's Chuquicamata copper mine in Chile, according to Reuters. The company was forced to slash output at its El Teniente mine more than one month ago because of labor protests. On Wednesday, union workers blocked traffic to Chuquicamata, demanding higher wages. The company has not said whether the blockade will danger mining output levels yet.

Copper mining stocks were flat to positive, with mining company Southern Copper (SCCO - Get Report) up 1% at $31.40 and Freeport-McMoRan Copper & Gold (FCX - Get Report) up 0.4% at $49.43.
<BRACKET>Most Recent Quotes from</BRACKET>

Lihua International (LIWA) plans to ramp up scrap copper from abroad instead of buying from domestic importers, according to a company press release. The Chinese copper wire manufacturer announced this morning that it had gotten a green light from China's Ministry of Environmental Protection.

"By making direct purchase from overseas suppliers, we believe that over time we can achieve considerable raw material cost savings, which we believe will drive incremental gains to our bottom line as we continue to expand our scrap copper refinery capacity," said Lihua's CEO Jianhua Zhu. Lihua was last gaining 10% to $6.53 per share on the Nasdaq.

The level of Chinese demand in copper as reflected by how much buyers are importing has been crucial to the copper market which largely reacts to the fundamentals of supply and demand.

-- Written by Chao Deng in New York.

>To contact the writer of this article, click here: Chao Deng.

>To follow the writer on Twitter, go to: @chao_deng

>To submit a news tip, send an email to: Copyright 2011 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Copyright 2011 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LIWA $0.01 -30.27%
FCX $11.29 -4.32%
SCCO $28.24 -0.91%
AAPL $93.24 -0.41%
FB $117.81 -0.21%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs