Dollar, China data send copper prices higher

Copper prices were higher Monday as the US dollar weakened and new data showed that China’s imports of copper and exports of all  products were up significantly in December.

March copper added 4 cents to $3.44 per pound in New York trade while three-month contracts for copper added $102.50 to $7,567.50 per tonne on the London Metal Exchange.

China imported 27 percent more copper and copper products in December than it did in November and imports of the metal used in manufacturing and construction were 29 percent higher in December 2009 than they were in December 2008.

Additionally, China’s exports of all products were 17.7 percent higher in Decmeber against an expected gain of 4 percent.

However, LME stockpiles of copper added 4,575 tonnes to 515.200 tonnes, putting demand outside of China in question.

Most other base metals prices were higher on the LME, but lead traded even at $2,532 per tonne and nickel prices dropped $35 to $17,890 per tonne as inventories grew by 810 tonnes to a record high at 159,792 tonnes.

Aluminium added $50 to $2,330 per tonne as LME inventories dropped by 5,500 tonnes and there were warnings of power shortages to smelters in Henan province in China, while zinc was up $52 to $2,573 per tonne despite a 575-tonne gain in inventories, and tin gained $560 to $17,900 per tonne after going as high as $18,035 earlier.

Meanwhile, among precious metals, February gold was up $12.50 to $1,151.40 per troy ounce, March silver gained 23 cents to $18.70 per troy ounce and April platinum added $25.40 to $1,596 per troy ounce.