Copper closes with more than 2% hike

LONDON.- Copper closed with a 2.64% gain today at the London Metal Exchange (LME) after trading for US$ 1.28956 per pound of "grade A" material, compared to US$ 1.25645 on Wednesday, December 24th –its lowest value in 4 years and three months— and US$ 1.29297 on Tuesday, December 23rd.

Despite the increase however, the monthly average dropped to US$ 1.40369, while the yearly average slipped to US$ 3.16790.

The metal has decreased in value by almost 60% this year and forecasts predict that it will continue to be week in 2009 in light of the worldwide financial crisis.

"There is still a lot of fear and that is going to weigh down on any gains", stated a Sucden broker.

"We are still afraid of the recession, which will definitely hurt the demand for metals", an LME operator asserted while in Shangai.

Meanwhile, the future-3-month price quote ended at US$ 1.30725 per pound, up 2.20% from Wednesday, December 24th (US$ 1.27913).

At the LME, stocks rose by 5,250 metric tons to 336,700. So far this year, there has been an accumulated increase of 139,250 MT (+ 70.52%).