Bailout uncertainty slows copper trade

Copper prices fell Friday on low trade volumes as investors fretted about demand growth and waited for something to happen in negotiations over the US bailout plan after talks faltered late Thursday when some Republicans would not agree to back the plan that had been agreed in principle earlier in the day.

December copper was down 6 cents to $3.07 per pound in New York while three-month copper dropped $155 to $6,775 per tonne on the London Metal Exchange.

The lower prices came despite a decline of 350 tonnes in LME inventories and a decline as well in Shanghai Futures Exchange warehouse stockpiles, which hinted at higher demand.

Aluminium inventories added 1,650 tonnes, sending the price of that metal down $15 to $2,494 per tonne, while the price of zinc fell $30 to $1,770 per tonne, lead was $55 lower to $1,960 per tonne and nickel dropped about $100 to $17,000 per tonne as inventories hit their highest level in nine years.

Among precious metals, December gold was up $6.50 to $888.50 per troy ounce and Decmeber silver gained 26 cents to $13.50 per troy ounce but January platinum dropped $68.10 to $1,123.10 per troy ounce.