After a rise, copper climbed down by the end of the week and caused a slump for all base metals this week.
According to market reports, copper had gained around 10 per cent on Monday. However, this has not helped boost the metal’s future as analysts fear that copper’s grim future will continue.
Copper for March delivery on the New York Mercantile Exchange’s COMEX division plunged 10.20 cents, or 6.4 per cent, to settle at $1.4845 a lb, after dealing between $1.4545 and $1.6250.
On Monday, the contract soared to its highest level since December 2 at $1.6310.
Analysts said bears are still in control, threatening to take the prices down to $1.25.
Copper for three months delivery on London Metal Exchange fell to $3223 a tonne and closed at $3310 a tonne, down from $3560 a tonne at the close on Monday.
Because of the build in short positions across base metals, copper in particular, prices are quite vulnerable.
But without any improvement in the fundamentals the gains are going to be short-lived.
Aluminium ended at $340 from $383 a tonne while nickel slumped nearly 7 per cent to a low of $11,160 a tonne before bouncing to close at $11,400 a tonne versus $12,050 on Monday.
Zinc fell to $US1145/1150 a tonne from $US1200 while lead was down at $US1145 from $US1185.
