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METALS-China easing, Greek bailout hopes boost copper
* Traders say China reserves cut positive; physical market quiet
* U.S. markets closed for holiday
* Coming Up: Euro zone ministers to meet on Greece bailout
By Maytaal Angel
LONDON, Feb 20 (Reuters) - Copper rose nearly 3 percent on Monday as
riskier assets were buoyed by policy easing in China, the top consumer of most
metals, and as expectations mounted that euro zone policymakers would approve
Greece's long-awaited second bailout.
A meeting is scheduled on Monday to approve a 130 billion euro ($171.1
billion) rescue for Greece that should remove the risk of a disorderly default
next month. Although financing gaps remain, a euro zone official said they were
not so large as to risk derailing the process.
China's central bank on Saturday cut the amount of cash that banks must hold
in reserves, a step that is expected to boost lending capacity by more than $50
billion as the world's second-biggest economy faces a fifth successive quarter
of slowing growth.
But traders said China's easing steps may still take some time to filter
down to metals product makers, with one major domestic trader saying he expected
only an ancillary impact on his business as such steps do not translate directly
into better access to loans.
Benchmark three-month copper prices on the London Metal Exchange,
untraded in official rings, was bid at $8,235.5 from $8,175 at the close on
Friday after reaching a session high of $8,396.5. Copper fell almost 4 percent
last week, its biggest weekly loss in nine weeks.
"There is an element of fatigue about this situation in Europe, perhaps
reflecting the fact that there's much less risk of a systemic banking crisis
associated with a possible Greek default," said Credit Suisse analyst Tom
Kendall.
"We're not seeing Chinese buyers active on international markets, and U.S.
copper premiums aren't showing a great deal of signs of life, but looking
forward, the U.S. recovery should stay on track and we think China will ease
(monetary policy) from here on, which should support demand."
MAJOR FACTORS
Credit has been a major factor constraining commodities demand growth in
China, which accounted for around 40 percent of global refined copper demand
last year.
Copper stocks in warehouses monitored by the Shanghai Futures Exchange are
at their highest in nearly a decade, data showed on Friday, as traders routed
metal to the world's top copper consumer on hopes demand would pick up after the
Lunar New Year in January.
"The physical market is still not responding, and it may take more time to
consume domestic stockpiles, since stocks built on the ShFE on Friday," one
Shanghai-based trader said.
LME copper stocks in London continued to fall, with the latest data showing
a drop of 500 tonnes to 305,875, their lowest point since early September 20009.
But with Shanghai stocks rising, the would-be bullish signal from the data has
been called into question.
Supporting copper, however, the China policy easing and Greek bailout hopes
boosted the euro versus the dollar, making dollar-priced metals cheaper for
European and other non-U.S. investors.
LME cash copper is trading at a discount of just $6 a tonne versus
the three-month contract, compared with a discount of $26 earlier this
month, possibly indicating that near-term supply is getting tighter.
"On average global (copper) supply has fallen short of plan by more than 6
percent since 2005. Copper was the only major base metal that avoided testing
the cost curve in the second half of 2011. The key to copper's elevated price
versus cost lies with struggling mine supply," said Macquarie analysts in a
note.
Lead, untraded in rings, was bid at $2,059.50 from $2,056, with LME
stocks down 1,975 tonnes at 377,825 tonnes - not far off their highest level of
388,500, hit in October last year.
Tin was $23,575 in official rings from $23,475. Zinc,
untraded in rings, was bid at $1,973 from $1,945, aluminium was bid at
$2,178 from $2,164, while nickel was bid at $19,740 from $19,650.
Metal Prices at 1324 GMT
Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T
Metal Last Change Pct Move End 2010 Ytd Pct
move
COMEX Cu 374.10 3.30 +0.89 444.70 -15.88
LME Alum 2174.75 10.75 +0.50 2470.00 -11.95
LME Cu 8236.50 61.50 +0.75 9600.00 -14.20
LME Lead 2056.50 11.50 +0.56 2550.00 -19.35
LME Nickel 19636.00 -14.00 -0.07 24750.00 -20.66
LME Tin 23550.00 75.00 +0.32 26900.00 -12.45
LME Zinc 1979.25 34.25 +1.76 2454.00 -19.35
SHFE Alu 16135.00 -40.00 -0.25 16840.00 -4.19
SHFE Cu* 59340.00 -410.00 -0.69 71850.00 -17.41
SHFE Zin 15605.00 30.00 +0.19 19475.00 -19.87
** Benchmark month for COMEX copper
* 3rd contract month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07
LME MORNING - Base metals rise on brighter macro outlook
By Kathleen Retourne, Correspondant London 20/02/2012 -
Base metals held onto their gains on the LME on Monday morning, although the complex
did step back from intraday highs.
The market was buoyed after China said it would cut its banking reserve ratio. The
People's Bank of China announced on its website Saturday that bank reserve requirements
will fall 50 basis points effective February 24, which will boost lending capacity in
the world's second-largest economy by an estimated 350-400 billion yuan.
"China’s announcement to cut the reserve requirement ratio by 50 basis points over the
weekend may help to spark domestic metals demand before too long,” Credit Suisse said,
although it warned of near-term retracement should Chinese consumers remain out of the
market.
In the eurozone, finance ministers will meet in Brussels this afternoon to discuss the
bailout agreement for Greece. The euro is currently at 1.3222 against the dollar.
With the US on holiday for Presidents’ Day there is no major economic data out today so
the markets should be able to focus on the markets' fundamentals and developments in
Greece.
“Given the emergence of more quantitative easing, the weight of money is likely to
remain a bullish factor. Although we do not feel the fundamentals justify these high
price levels, it is likely to take a catalyst to trigger a more meaningful correction,”
FastMarkets analyst William Adams said. “Until then we would not be surprised by further
consolidation."
Aluminium ticked up to $2,181.25 per tonne, a rise of $17.25 on Friday’s close. LME
warehouse stocks dipped, falling a net 3,575 tonnes to 5,117,075 tonnes, while cancelled
warrants at 1,554,225 tonnes were down 1,450 tonnes. Although cancelled warrants have
dipped, Vlissingen cancelled warrants remain high at 917,400 tonnes.
Copper stocks fell for the fourth consecutive day, down 500 tonnes to 305,875 tonnes,
while cancelled warrants at 825,350 tonnes were down 3,050 tonnes. Although the metal
was up $115 at $8,290, Standard Bank warned that it may be overpriced at this level.
“Strategically, we do not believe that the current rally in copper is sustainable,” it
said. "The metal is below its 200-day moving average at $8,405 again. With copper
inventory in Shanghai rising, combined with CIF premiums coming under pressure, we
believe that downside remains exposed. On the downside, we see value in copper below
$7,000."
Lead at $2,067 was up $22. Warehouse stocks declined 1,975 tonnes to 377,825 tonnes and
cancelled warrants slipped 1,975 tonnes to 42,350 tonnes.
Nickel at $19,820 rose $170, stocks were up 402 tonnes to 96,816 tonnes while cancelled
warrants were up 669 tonnes to 4,794 tonnes.
Zinc at $1,985 was just $4 higher, while stocks rose 325 tonnes to 850,575 tonnes and
cancelled warrants increased 100 tonnes.
Tin edged closer to $24,000 - at $23,950, it was up $475 although inventories were up
85 tonnes at 10,080 tonnes and cancelled warrants were unchanged at 1,220 tonnes.
Steel stocks were unchanged at 72,410 tonnes - the metal was offered at $510. In the
minors, cobalt was quoted at $30,000/32,000 and molybdenum was neglected.
(Editing by Mark Shaw)
Western Areas Says Nickel Prices Are Rebounding on Steel Demand
By Soraya Permatasari - Feb 16, 2012
Western Areas NL (WSA), Australia’s second-biggest nickel producer, said prices are
rebounding and will extend gains in the next three years, aided by Chinese demand.
Nickel, used to harden steel, may climb to $10 a pound by the end of the year as annual
demand, led by China, grows as much as 6 percent, Dan Lougher, managing director at the
Perth- based company, said today in a phone interview. Prices may exceed $12 a pound
after 2013 as China’s production of lower- quality nickel pig iron, estimated to account
for 15 percent of global demand, dwindles and Indonesia imposes an export ban on unprocessed
metal starting 2014, he said.
Nickel prices fell 24 percent to $18,710 a metric ton last year, or $8.5 a pound,
reflecting lower demand from stainless steel consumers in Europe. An increase in prices,
which have gained 6.5 percent this year, will mitigate rising production costs at producers
in Australia, Lougher said.
“We’re obviously very bullish looking at the price and demand will be strong in China,”
Lougher said. “Production of nickel pig iron in China is actually going to be a problem at
some point with some of the producers being shut down.”
Melbourne-based BHP Billiton Ltd. (BHP), the largest nickel producer, this month cut the
mining rate at Nickel West in Western Australia by 30 percent, citing lower metal prices
and a rising Australian dollar that drove up costs.
Global supply will also be hit when Indonesia begins to impose a regulation requiring
mining companies to process metal ores locally from 2014, Lougher said.
“Indonesia is a major supplier of raw material to the nickel pig iron industry in China,”
he said today. “Further restriction of material sources for the nickel pig iron producers
is likely to even further hamper the expensive economics of nickel pig iron.”
Copper gains
February 15 2012
By Reuters
Copper rose on Wednesday as the euro strengthened following positive comments from
China on the euro zone debt crisis and optimism Greece would be able to implement
tough austerity measures needed to avert a disorderly default.
Three-month copper on the London Metal Exchange rose 0.6 percent to $8,462 a tonne
by 11:58 SA time, from Tuesday's close of $8,415 a tonne.
The euro rose against the dollar after China's central bank governor said the country
would play a bigger role in solving Europe's problems and would continue to invest in
euro zone government debt, while calling on Europeans to produce more attractive
investment products for China.
A weak dollar makes commodities priced in the US currency cheaper for holders of other
currencies.
“The one thing that is changing the perspective in the market today is comments from
China indicating that they will be prepared to help,” said Nic Brown, head of commodity
research at Natixis.
“It suggests very much that Europe is a problem, and if it can be fixed in any way,
then the rest of the world is perceived to be doing quite well.”
European Central Bank board member Joerg Asmussen said on Wednesday Greece can meet
the conditions for finance ministers to agree a second aid package at their meeting
next Monday, which would then permit a sovereign bond swap to be completed in time.
Euro zone finance ministers dropped plans on Tuesday for a special face-to-face meeting
on Greece's new international bailout, saying political party chiefs in Athens had failed
to provide the required commitment to reform.
Copper had fallen from a five-month high last week, but it is still up more than 11
percent so far this year.
“Generally speaking, the increase in metal prices since the beginning of the year would
appear excessive - virtually all metals have seen two-digit growth rates so far - so a
correction would not surprise us,” Commerzbank analysts said in a note.
CHINA DEMAND
Demand in China, the world's top copper consumer, has yet to pick up after its week-long
Lunar New Year holiday late in January, in part due to lower ordervisibility on products
for export to debt-laden Western economies.
January's total imports were 18.7 percent lower compared with a record high of 508,942
tonnes in December as public holidays slowed trade. Refined copper imports for January
will be announced next week.
“The market is still waiting for signs of improving physical demand in China, which has
remained muted since the Lunar New Year period,” Credit Suisse analysts said in a note.
China is likely to import less refined copper from the spot market in February and March
due to plentiful stocks and weak demand, which are also weighing on Shanghai prices,
industry sources said earlier this week.
“China's physical market is very soft. There's a few cheeky bids around where people are
happy to pick up things at low premiums, but it doesn't mean the business is actually
happening,” said a trader based in Singapore.
Aluminium rose to $2,230 from Tuesday's close of $2,215. Zinc , used in galvanizing,
climbed to $2,039 a tonne from $2,032 on Tuesday, while nickel rose to $20,331 from
$20,150.
Battery material lead climbed to $2,084 from $2,074.50 while tin rose to $24,600 from
$24,350. - Reuters
LME MORNING - Metals steady on improved risk sentiment but soft European GDP curbs move
By: Martin Hayes
London 15/02/2012 - Base metals were largely steadier during Wednesday LME premarket
trading, amid a modest pickup in risk sentiment in all financial markets, although
European GDP figures tempered the upmove.
"Metal prices are currently being driven by macro-level factors, first and foremost
the risk aversion of market players, which is reflected in the equity markets, the
dollar and political activities/statements," broker Commerzbank said.
The steadier tone reflected the perception that Greece will agree the terms to secure
its latest debt bailout, which helped the euro stabilise around 1.3175 against the dollar.
Greek conservative party leader Antonis Samaras is due to deliver a letter of commitment
to international lenders today, agreeing austerity cuts, meeting a key condition for a
bailout agreement.
But the uncertainty over Greece remains, while the eurozone itself is struggling economically.
Today, Italy, Germany and the Netherlands all reported negative growth in the final quarter
of last year, while GDP for the region as a whole dropped.
For now, metals prices may range sideways, continuing the trend seen since the latter
part of last week when they stepped back from multi-month highs. Activity in the physical
sector is still muted - Chinese demand has yet to emerge following the Lunar New Year.
"Yesterday the metals looked as though they were heading lower but their rebound overnight
now suggests they may spend more time consolidating within recent ranges," William Adams
of FastMarkets said.
On the US data side, US industrial production figure and the Empire Manufacturing index
will be released early this afternoon.
ALUMINIUM INVENTORY SOARS AGAIN
Aluminium moved off its highs to trade at $2,222 per tonne, up $7 still. The focus was on
inventory data - stocks soared a net 7,125 tonnes to 5,121,300 tonnes, a fresh all-time
high, due to an 11,125-tonne warranting in Vlissingen.
And cancelled warrants - metal booked for removal - leapt 24 percent to 1,543,475 tonnes.
This was due to a 47-percent jump in Vlissingen cancellations to 926,600 tonnes. There are
only 65,175 tonnes of free metal in this location now, with the removal queue now stretching
out to June 2013.
Traders said off-warrant metal is being registered to gain more rental revenues, with the
metal there being cancelled immediately. This lengthens the queue and forces physical
premiums higher. More metal is expected to be cancelled in Vlissingen.
Copper backed away after peaking above $8,500 to trade at $8,437, still up $22. Stocks
resumed their 2012 downtrend after a two-day run of increases - inventories fell 750
tonnes to 313,050 tonnes.
In other metals, zinc was $5 higher at $2,037 after an 1,125-tonne stock fall to 846,925
tonnes. Lead rose to $2,084, a $9.50 advance, while stocks dropped 400 tonnes to 383,300
tonnes.
Nickel traded at $20,300, a $50 decline - inventories jumped 1,392 tonnes to 95,712 tonnes.
Tin business at $24,608 was up $258, with inventories falling 120 tonnes to 9,180 tonnes.
Steel traded at a steady $505, while in the minors cobalt business at $32,500 was up $500.
Molybdenum was little changed at $32,500/33,600.
(Editing by Mark Shaw)
GLOBAL AVERAGE STEEL PRICE HIKES FORECAST OVER NEXT SIX MONTHS
2/10/2012
MEPS predicts that its World Composite Steel Price will rise by approximately 11.5
percent by mid 2012. The most significant gains are anticipated in the flat products
segment as prices rally after the substantial reductions in the second half of last
year. As outlined in the January edition of the International Steel Review, the
improvement in the long products markets will be less dramatic.
The steel price revival was led by the changing market situation in North America as
scrap prices surged at the end of 2011. The prospect of higher raw material costs also
pushed up steel selling values recently in Asia and Europe.
Transaction figures are, however, expected to soften between July and December. The
anticipated inventory building, resulting from the rising prices, should come to an
end in that period. MEPS predicted the price reduction during the second half of 2011
and the subsequent upturn in early 2012. (See Charts)
UPDATE 1-China's Baosteel lifts March steel prices from Feb
* Baosteel raises prices by 150 yuan/T for March
* Increase in prices within market expectations
* Seasonal improvement seen in steel demand
* Analysts remain cautious over market outlook
(Adds analysts comments)
SHANGHAI, Feb 10 (Reuters) - China's Baoshan Iron & Steel will raise its main steel
product prices for March, it said on Friday, a move seen as tapping into improving
steel demand.
Analysts expect a seasonal pick-up in steel demand to encourage steel mills in the
world's largest steel producer to lift prices, but uncertainties in the marco-economy
may stifle hopes of any big price spike in the domestic market.
"An increase in steel demand in March is expected, and steel mills are eager to lift
prices after producing at marginal profits or making losses over the past few months,"
said Hu Zhengwu, analyst with Beijing-based industry consultancy Custeel.com.
The Shanghai-based firm will raise hot-rolled coil and cold-rolled coil prices by 150
yuan ($23.83) per tonne respectively, after the company kept prices flat for February.
Baosteel said earlier its 2011 unaudited net profit fell 43.4 percent, while another
major mill Angang Steel made a net loss of around 2.2 billion yuan for the year due to
rising raw materials costs.
"Traders and users have strong demand for restocking after the Lunar New Year holiday,
and steel mills are also hoping to deliver more products to market to replenish capital,"
Hu added.
CAUTION LINGERS
However, analysts warned that a crackdown in the property market and few signs tight
liquidity may ease soon will continue to weigh on steel demand, limiting price gains.
"The seasonal recovery in steel demand will come later this year compared to the past,
and I expect the market will continue to fluctuate but no big falls are on the cards,"
said Zhou Weijiang, an analyst with Galaxy Futures in Beijing.
China's annual inflation spiked to a consensus-busting 4.5 percent in January as
spending jumped during the Lunar New Year holiday season, breaking a five-month
softening trend and giving Beijing limited room to ease liquidity massively in the near
term.
However, China's top planning agency, the National Development and Reform Commission
(NDRC), said consumer inflation would resume an easing trend after January's rebound.
China's crude steel production has been running at low rates since November, with daily
output standing at below 1.7 million tonnes, which could support the market in the near
term.
"The spring season for the steel market will come sooner or later. But it's still too
early to forecast any big increase in prices as Beijing's monetary policy trend remains
unclear," Zhou added.
($1 = 6.2952 Chinese yuan) (Reporting by Ruby Lian and Jacqueline Wong)
Copper prices jump on improving US jobs market
By SANDY SHORE | Associated Press – Fri, Feb 3, 2012
Copper prices jumped 3.2 percent Friday after a sharp improvement in the U.S. job
market and higher factory orders raised hopes for stronger demand.
The move ended an erratic week of small price losses and gains for the industrial
metal as investors looked for clues about what's ahead for the global economy in a
slew of economic reports from several countries. Copper can be an indicator of
economic health because it is used in a wide range of products from consumer
electronics to pipes and wires.
The government said 243,000 jobs were added in January across a broad array of
industries. Manufacturing alone added 50,000 jobs, the most in a year. January's
unemployment rate dropped to 8.3 percent and factory orders rose 1.1 percent in
December.
Separately, a trade group said service companies grew at the fastest pace in 11 months
in January as companies hired workers to keep up with demand.
The data pointed to an improving U.S. economy which is "the bottom line" for industrial
metals like copper, said Matt Zeman, a Kingsview Financial analyst.
However, copper prices likely will remain choppy in the near term because of concerns
about a slower economy in China, which is a huge importer of the metal, he said.
The other unknown factor is how much of an impact Europe's debt crisis will have on
the global economy.
Copper for March delivery rose 12.05 cents to finish at $3.9015 per pound. That's up
2 percent since Monday and 10.6 percent for the year.
In other trading, gold for April delivery fell $19 to finish at $1,740.30 an ounce
and March silver declined 42.6 cents to $33.749 per ounce. April platinum rose $2 to
end at $1,631.90 per ounce and March palladium increased $1.20 to $708.85 per ounce.
In other trading, benchmark oil rose $1.48 to finish at $97.84 per barrel on the New
York Mercantile Exchange. Heating oil increased 6.15 cents to end at $3.1144 per gallon,
gasoline futures rose 4.55 cents to $2.9144 per gallon and natural gas fell 5.5 cents
to $2.499 per 1,000 cubic feet.
In March agriculture contracts, wheat fell 2 cents to finish at $6.6075 per bushel,
corn rose 1.5 cents to $6.445 per bushel and soybeans increased 15.5 cents to $12.325
per bushel.
Industrial metals prices rise on reports of manufacturing
expansion; other commodities mixed
By Associated Press, Published: February 1
Industrial metal prices rallied Wednesday after a report that manufacturing grew
in January, offering some hope that companies may need more raw materials in the
months ahead.
U.S. factory production grew at the fastest pace in seven months, according to the
Institute of Supply Management, a trade group of purchasing managers. Its manufacturing
index increased to 54.1 from 53.1 in December.
New orders and order backlogs hit nine-month highs. That suggests production could
rise. Separately, the Commerce Department said construction spending rose 1.5 percent
in December, the fifth straight monthly gain.
A Chinese manufacturing index rose in December, and a manufacturing index for European
countries that use the euro improved in in January for the second straight month,
according to Markit Economics.
CPM Group analyst Carlos Sanchez said the industrial metals, such as copper, platinum
and palladium, have had a strong rally this year. He attributed it to signs of an
improving U.S. economy and a weaker dollar. Because commodities are priced in dollars,
a weaker dollar makes them cheaper for buyers who use other currencies.
The three metals are used to produce products from buildings and electronics to
catalytic converters.
In March contracts, copper rose 5.2 cents to finish at $3.842 per pound, palladium
rose $10.35 to $696.70 per ounce, and silver increased 54.5 cents to $33.807 per ounce.
April platinum ended up $35.10 at $1,623.20 per ounce and February gold increased $9.10
to $1,749.50 an ounce.
In other trading, wheat prices rose on speculation that cold weather damaged winter
wheat crops in the Black Sea region of Russia and the Ukraine, analysts said.
Wheat for March delivery increased 8.25 cents to $6.7425 per bushel. March corn rose
3 cents to $6.42 per bushel and March soybeans ended up 16.25 cents at $12.1525 per
bushel.
Natural gas plunged nearly 5 percent after some energy companies decided against making
production cuts despite bulging inventories. Natural gas ended down 12.1 cents at $2.382
per 1,000 cubic feet on the New York Mercantile Exchange.
Benchmark oil fell 87 cents to finish at $97.61 per barrel, heating oil fell 0.54 cent
to $3.0455 per gallon and gasoline futures rose 0.13 cent to $2.8922 per gallon.
AP Economics Writer Christopher S. Rugaber contributed to this report.
CHINA DRIVES CONTINUING GROWTH IN STAINLESS STEEL OUTPUT
MEPS 2/1/2012
Official figures for global crude stainless steel production in 2011 are estimated to
have reached another all-time high total of 32.05 million tonnes, 3.1 percent above
the previous record, set one year earlier. In the traditional stainless steel making
regions, only the EU and South Korea exceeded the 2010 outturn. The United States,
Japan and Taiwan all produced less than in the previous year. Production in other
countries increased by 6 percent, including double-figure growth in Russia and Ukraine.
Chinese production, according to officially reported figures, climbed by 11.1 percent,
to 12.5 million tonnes. However, it is believed that much stainless steel, particularly
200-series material, is made by companies who are not CISA members. This material is,
therefore, not included in widely quoted statistics. This under-reporting may have
amounted to as much as 2.5 million tonnes in 2011, or an additional 20 percent.
Worldwide stainless steel output is forecast to grow by 5.8 percent, year-on-year, in
2012, to give another new record total of 33.9 million tonnes. If Chinese unreported
production continued at the same rate, the figure would be 36.6 million tonnes.
Stainless steel making in the EU picked up in the fourth quarter of 2011, to total an
estimated 7.6 million tonnes, 1.4 percent more than in 2010. We forecast a further
increase of 3.9 percent in 2012. However, this figure may be affected by possible
capacity reductions arising from consolidation in the European stainless steel sector.
Annual production in the United States fell in 2011. There are now signs of increased
economic and industrial activity in the US and a rise is forecast for 2012.
Japanese output slipped in 2011, inevitably affected by the earthquake and tsunami
in March. A modest recovery is predicted this year.
Taiwan's producers appeared to suffer most from reduced demand in the region. Last
year's output was substantially down on the 2010 figure. A minimal increase is foreseen
for 2012.
Copper Futures Rise as Manufacturing Gains in China, U.S., India
By Joe Richter and Agnieszka Troszkiewicz
Feb. 1 (Bloomberg) -- Copper futures rose, snapping a three-session slump,
as manufacturing gains in Asia and the U.S. bolstered prospects for metal demand.
In January, a purchasing managers’ index gained in China, the world’s top copper
buyer. A similar measure for India climbed at the fastest pace in eight months.
Manufacturing in the U.S., the second-biggest consumer of the metal, expanded at
the quickest pace in seven months as orders and exports accelerated, according to
the Institute for Supply Management.
“Global manufacturing was good overall, so that’s giving copper some strength,”
Fain Shaffer, the president of Infinity Trading Corp. in Medford, Oregon, said in
a telephone interview. “The key with the U.S. report was new orders, and that’s
encouraging.”
Copper futures for March delivery climbed 1.4 percent to settle at $3.842 a pound
at 1:21 p.m. on the Comex in New York. The metal dropped 2.9 percent in the previous
three sessions.
On the London Metal Exchange, copper for delivery in three months gained 1.4 percent
to $8,440 a metric ton ($3.83 a pound).
Aluminum, lead, nickel and zinc also rose in London. Tin fell.
Last month, an LME index of the six industrial metals rose 11 percent, the biggest
January gain since 2006. The Federal Reserve’s pledge to keep U.S. interest rates
at a record low through late 2014 helped boost prices.
--With assistance from Unni Krishnan in New Delhi and Shobhana Chandra in Washington.
Editors: Millie Munshi, Thomas Galatola
METALS-London copper steady; heads for biggest gain in 3 mths
* Copper heads for 11 pct gain in Jan; biggest in 3 mths
* Euro zone debt crisis worries blunt Asian demand optimism
* Coming Up: U.S. consumer confidence; 1500 GMT
(Adds comments, updates prices)
By Jane Lee
KUALA LUMPUR, Jan 31 (Reuters) - London copper was
steady on Tuesday after two straight days of decline as
investors focused on the funding needs of Greece and Portugal,
with the euro zone sovereign debt crisis blunting optimism that
Asian demand will remain strong.
Three-month copper on the London Metal Exchange Was
down 0.12 percent at $8,419.25 a tonne by 0525 GMT, after its
biggest decline in more than a week in the previous session.
Copper is headed for its biggest gain in three months, set for
an increase of 11 percent in January.
The most-traded April copper contract on the Shanghai
Futures Exchange gained 0.2 percent to 60,450 yuan
($9,500) a tonne.
"Copper is a bellwether for global growth and any sort of
negative macro themes will mean copper will be pressured," said
Natalie Robertson, a commodity strategist at ANZ Investment Bank
in Melbourne.
"The market's still very much watching what's happening in
Greece and now Portugal is starting to come back into the
picture. That's quite a worry."
Greek Prime Minister Lucas Papademos said negotiators had
made "significant progress" on talks for a debt swap deal
between the government and private bond holders, with the aim of
having a definitive agreement by the end of this week.
J.P. Morgan cut its price forecasts for base metals for 2012
as price gains so far this year aren't sustainable, the
investment bank said.
Still, the IMF's top official for Asia and the Pacific said
on Monday that Asian economies remain "generally resilient" in
the face of global financial turmoil and a growing debt crisis
in the euro zone.
In northern Chile, workers of a union at Teck Resources
Ltd's mid-sized Quebrada Blanca copper mine are poised
to strike after labor contract talks with the mining company
broke down, a union leader said on Monday.
Chile's copper output jumped in December from a year earlier
but registered a drop of 3.2 percent in 2011 from the prior year
as falling ore grades, labor woes and weather problems hammered
the world's top producer, the government said on Monday.
Base metals prices at 0525 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 8419.25 -9.75 -0.12 10.78
SHFE CU FUT APR2 60450 130 +0.22 9.19
HG COPPER MAR2 382.55 -0.05 -0.03 11.34
LME Alum 2271.25 -7.75 -0.34 12.44
SHFE AL FUT APR2 16300 25 +0.15 2.87
LME Zinc 2105.00 -19.00 -0.89 14.09
SHFE ZN FUT APR2 15990 50 +0.31 8.08
LME Nickel 21336.00 31.00 +0.15 14.04
LME Lead 2264.00 -1.00 -0.04 11.25
SHFE PB FUT 16135.00 15.00 +0.09 5.56
LME Tin 24150.00 175.00 +0.73 25.78
LME/Shanghai arb^ 1763
Shanghai and COMEX contracts show most active months
^ LME 3-month copper in yuan, including 17 pct VAT, minus
SHFE third month
($1=6.3310 Chinese yuan)
(Editing by Clarence Fernandez)
Copper Heads for First Monthly Gain in Three as Tin Beats Peers
By Bloomberg News - Jan 31, 2012
Copper rallied, extending the first monthly gain since October, after Greece’s
Prime Minister said major progress was made in debt talks. Tin was set for its
best month since at least 1992 outperforming other commodities.
Three-month copper climbed as much as 0.5 percent to $8,473.25 a metric ton on
the London Metal Exchange after falling 0.6 percent. The contract traded at
$8,465 by 3:53 p.m. Shanghai time and is up 11 percent this year. March-delivery
copper on the Comex rose 0.6 percent to $3.8510 per pound.
Greece aims to complete debt-swap talks with bondholders by the end of this week,
Prime Minister Lucas Papademos told reporters after the European Union summit in
Brussels. Papademos said he is “strongly committed” to reaching a deal, as the
country faces a 14.5 billion-euro ($19 billion) bond payment on March 20. The dollar
weakened against most of its major peers, as the Dollar Index lost as much as 0.4
percent today to 78.824.
“Copper lacks the momentum to rally further without solid buying on the spot market
in China, but a weak dollar today aided the market,” Pang Juan, an analyst at Jinrui
Futures Co., said by phone from Shenzhen.
The metal for April-delivery on the Shanghai Futures Exchange closed 0.5 percent
higher at 60,620 yuan ($9,604) per ton. Copper for immediate delivery on Shanghai’s
Changjiang market traded at a discount of about 350 yuan to the front-month futures
contract today.
Tin has gained 25 percent this month in London and is the best performer among 80
commodities tracked by Bloomberg. The metal climbed 0.3 percent to $24,050 a ton
today. Aluminum rose as much as 0.7 percent to $2,295 a ton, the highest in three
months. Zinc traded little changed at $2,123 a ton, and lead advanced 0.4 percent
to $2,274 a ton.
Nickel climbed 0.2 percent to $21,344 a ton after Vale SA (VALE3) said it had shut
down all its mines in Sudbury, Ontario, after a worker was killed in an accident at
the Coleman mine.
Copper Gains as BRIC Easing May Boost Demand: LME Preview
By Maria Kolesnikova - Jan 24, 2012 2:03 AM CT
Copper may gain in London after India’s central bank joined BRIC
nations in aiding growth by unexpectedly cutting the cash reserve
ratio and signaling future interest-rate cuts, boosting demand
outlook for the metal.
Metal Prices:
-- Copper rose 0.2 percent to $8,380 a metric ton
at 7:38 a.m. on the London Metal Exchange. Relative Strength
Index 67.
-- Aluminum gained 0.4 percent to $2,247 a ton. RSI 67.
-- Zinc jumped 0.8 percent to $2,076 a ton. RSI 70.
-- Lead gained 0.3 percent to $2,251.50 a ton. RSI 70.
-- Nickel gained 0.7 percent to $20,450 a ton. RSI 68.
-- Tin rose 0.3 percent to $22,222 a ton. RSI 71.
Other Markets:
Last % Change % YTD
U.S. Dollar Index 79.805 0.0 -0.5
Crude oil $99.76 0.2 0.9
Gold $1,676.10 -0.1 7.2
MSCI World Index 1,241.57 -0.1 5.0
Economic events:
Forecast Prior Time
(London)
Germany PMI Manufacturing JAN 49.0 48.4 8:30
EC PMI Manufacturing DEC JAN 47.3 46.9 9:00
U.S. Richmond Fed Manufact. JAN 6 3 15:00
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