Copper Prices Remain Steady Amid Ireland Bailout, Chile Mine Strike

Copper prices were holding steady despite a troubled economic landscape, as investors await further developments in the wake of Ireland's bailout and ongoing strikes in Chile's copper mines. The March delivery copper contract on the Comex division of the New York Mercantile exchange was trading at $3.7530 a pound, up 0.2 cents from the previous session. The market's muted reaction to Ireland's aid package suggests concerns about the financial health of Spain and Portugal have yet to be fully alleviated. Meanwhile, a 25-day strike at one of the world's largest copper mines, Dona Ines de Collahuasi, has not significantly impacted output, with 44,000 metric tons of copper scheduled to be shipped to China and South Korea.

Key Takeaways:

• Copper prices were steady, with the March delivery contract trading at $3.7530 a pound, up 0.2 cents from the previous session.
• Ireland's bailout package totaling €85 billion has failed to generate significant market enthusiasm, as concerns about the financial health of Spain and Portugal persist.
• The ongoing strike at the Dona Ines de Collahuasi mine in Chile has not significantly impacted output, with shipments of 44,000 metric tons scheduled for China and South Korea.
• The strike has entered its 25th day, with 1,551 unionized workers participating.
• Copper inventories in London Metal Exchange-listed warehouses fell by 450 metric tons, leaving them at 356,550 metric tons.
• Comex inventories were down 150 short tons, standing at 72,396 short tons.
• A stronger dollar tends to weigh on dollar-denominated copper, making it more expensive for buyers using other currencies and dampening demand.
• Copper is sensitive to economic developments worldwide due to its widespread use in construction, appliances, electronics, and automobiles.

Statistics:

• Copper prices traded at $3.7530 a pound, up 0.2 cents from the previous session.
• Ireland's bailout package totaled €85 billion.
• The Dona Ines de Collahuasi mine strike entered its 25th day.
• 44,000 metric tons of copper were scheduled to be shipped to China and South Korea.
• Copper inventories in London Metal Exchange-listed warehouses fell by 450 metric tons, standing at 356,550 metric tons.
• Comex inventories decreased by 150 short tons, standing at 72,396 short tons.
• The strike involved 1,551 unionized workers.

Sources:

• Dow Jones Commodities News via Comtex (Nov 29, 2010)
• Matt Whittaker, Dow Jones Newswires (212-416-2139, matt.whittaker@dowjones.com)
• Carolina Pica (contributor to the article)