Bloomberg News

Copper Rises to Nine-Week High on Greek Vote, Dollar’s Slump

June 30, 2011

June 30 (Bloomberg) -- Copper rose to a nine-week high after the Greek parliament supported a European bailout, bolstering prospects for metal demand.

Euro-area finance ministers are set to approve the next aid payment due Greece and outline a second rescue after banks lined up behind debt-rollover plans. The dollar fell for the fourth staright day against a basket of major currencies, boosting the appeal of raw materials.

The vote “gave a bit of support to the market,” said Nick Riley, the head of London Metal Exchange sales at Marex Financial Ltd., one of 12 companies on the LME floor. “The dollar weakness is also helping the commodities.”

Copper futures for September delivery advanced 5.85 cents, or 1.4 percent, to settle at $4.2825 a pound at 1:29 p.m. on the Comex in New York. Earlier, the price reached $4.2875, the highest for a most-active contract since April 28.

On the LME, copper for delivery in three months rose $110, or 1.2 percent, to $9,430 a metric ton ($4.28 a pound). Zinc, lead and tin also advanced. Aluminum fell.

In the second quarter, copper in New York dropped 0.6 percent after demand waned in China, the world’s biggest metal consumer. Futures have dropped 8.1 percent from a record $4.6575 on Feb. 15 and are down 3.7 percent this year.

A faltering global economy has damped demand for commodities. Today, a government report showed more Americans than forecast filed applications for unemployment benefits last week, indicating little progress in a jobs recovery.

The U.S. Federal Reserve’s second round of quantitative easing, also known as QE2, concludes today.

--With assistance from Mark Deen in Paris. Editors: Patrick McKiernan, Millie Munshi

To contact the reporter on this story: Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net

To contact the editor responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net


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