Copper Slips as Greece Delay Sours Sentiment-Shanghai Metals Market

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Copper Slips as Greece Delay Sours Sentiment

Industry News 10:04:49AM Feb 16, 2012 Source:SMM

SHANGHAI, Feb 16 (Reuters) - Copper fell on Thursday, having lost ground for the last four sessions, after signs of a delay to a bailout for Greece soured sentiment and put the euro on the defensive against the dollar.   
   
Fundamentals    

Three-month copper on the London Metal Exchange slipped by 0.39 percent to $8,337.25 a tonne by 0113 GMT, extending losses from the previous session. The metal has fallen back by nearly five percent from a five-month high of $8,765 hit last week. A break of $8,280 a tonne, a key chart level of support, could open the way to further technical selling, analysts said.    

The most-traded May copper contract on the Shanghai Futures Exchange fell by -1.40 percent to 59,580 yuan ($9,500) a tonne.   

Greece expressed hope it can secure its second EU/IMF bailout in as many years and a deal on easing its debt burden next week, but its euro zone peers made clear the months of increasingly ill-tempered argument are not quite over yet.
    
Euro zone finance officials are examining ways of delaying parts or even all of a second bailout programme for Greece while still ensuring it avoids a disorderly default, several EU sources said on Wednesday.    

Moody's Investor Service warned on Thursday it could downgrade the credit ratings of 17 global banks and securities firms due to more fragile funding conditions, increased regulatory burdens and a more difficult operating environment.
    
The announcement came shortly after Moody's said it was taking ratings action on 114 financial institutions in 16 European countries to reflect the impact of the continent's debt crisis and the deteriortating creditworthiness of governments in the region.    

Output from the world's largest copper mine, Chile's Escondida, plummeted 24.6 percent in 2011 from a year earlier to its lowest level in nearly a decade, on sinking ore grades and a two-week strike, the mine said on Wednesday.     

Zinc miners are pushing smelters for a significant drop in fees they charge to convert concentrate into refined metal in 2012, due to prospects of tighter supply and lower spot premiums in China, industry sources said ahead of a gathering next week.
    
Copper prices could fall to $7,500 a tonne by the end of this quarter, erasing an 11 percent gain in the year to date, technical analysts say, as chart patterns throw up negative signals.   

Markets News   
The euro was on the defensive in early trade on Thursday as officials in Europe considered delaying a second bailout package for Greece even as the indebted country met demands set by international lenders.     

Asian shares and the euro fell on Thursday, sharply reversing the previous day's rally as optimism was dashed by another delay in cementing a crucial bailout for stricken Greece, underscoring how far away Europe is from resolving its debt crisis.
   
    DATA/EVENTS   
    1330 - U.S. Weekly Jobless Claims            
    1330 - U.S. Housing Starts/Building Permits For January    
    1330 - U.S. PPI/Core PPI for January    
    1400 - Federal Reserve Chairman Bernanke speaks   
    1500 - U.S. Treasury Secretary Geithner testifies    
    1500 - Phila. Fed Business Activity Index for February   
    1900 - U.S. Treasury Secretary Geithner testifies
       
   PRICES       
                                                             
  Base metals prices at 0113 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8337.25    -32.75     -0.39      9.70
  SHFE CU FUT MAY2    59580      -850     -1.41      7.62
  HG COPPER MAR2     378.95     -1.20     -0.32     10.29
  LME Alum          2194.50     -5.50     -0.25      8.64
  SHFE AL FUT MAY2    16165       -55     -0.34      2.02
  LME Zinc          2014.00      2.00     +0.10      9.16
  SHFE ZN FUT MAY2    15680      -265     -1.66      5.98
  LME Nickel       20075.00      0.00     +0.00      7.30
  LME Lead          2062.00      0.00     +0.00      1.33
  SHFE PB FUT      15700.00   -190.00     -1.20      2.72
  LME Tin          24595.00      0.00     +0.00     28.10
  LME/Shanghai arb^    1872
 
   Shanghai and COMEX contracts show most active months
 ($1 = 6.3000 Chinese yuan)
 

Key Words:  copper;fall Thursday 

Copper Slips as Greece Delay Sours Sentiment

Industry News 10:04:49AM Feb 16, 2012 Source:SMM

SHANGHAI, Feb 16 (Reuters) - Copper fell on Thursday, having lost ground for the last four sessions, after signs of a delay to a bailout for Greece soured sentiment and put the euro on the defensive against the dollar.   
   
Fundamentals    

Three-month copper on the London Metal Exchange slipped by 0.39 percent to $8,337.25 a tonne by 0113 GMT, extending losses from the previous session. The metal has fallen back by nearly five percent from a five-month high of $8,765 hit last week. A break of $8,280 a tonne, a key chart level of support, could open the way to further technical selling, analysts said.    

The most-traded May copper contract on the Shanghai Futures Exchange fell by -1.40 percent to 59,580 yuan ($9,500) a tonne.   

Greece expressed hope it can secure its second EU/IMF bailout in as many years and a deal on easing its debt burden next week, but its euro zone peers made clear the months of increasingly ill-tempered argument are not quite over yet.
    
Euro zone finance officials are examining ways of delaying parts or even all of a second bailout programme for Greece while still ensuring it avoids a disorderly default, several EU sources said on Wednesday.    

Moody's Investor Service warned on Thursday it could downgrade the credit ratings of 17 global banks and securities firms due to more fragile funding conditions, increased regulatory burdens and a more difficult operating environment.
    
The announcement came shortly after Moody's said it was taking ratings action on 114 financial institutions in 16 European countries to reflect the impact of the continent's debt crisis and the deteriortating creditworthiness of governments in the region.    

Output from the world's largest copper mine, Chile's Escondida, plummeted 24.6 percent in 2011 from a year earlier to its lowest level in nearly a decade, on sinking ore grades and a two-week strike, the mine said on Wednesday.     

Zinc miners are pushing smelters for a significant drop in fees they charge to convert concentrate into refined metal in 2012, due to prospects of tighter supply and lower spot premiums in China, industry sources said ahead of a gathering next week.
    
Copper prices could fall to $7,500 a tonne by the end of this quarter, erasing an 11 percent gain in the year to date, technical analysts say, as chart patterns throw up negative signals.   

Markets News   
The euro was on the defensive in early trade on Thursday as officials in Europe considered delaying a second bailout package for Greece even as the indebted country met demands set by international lenders.     

Asian shares and the euro fell on Thursday, sharply reversing the previous day's rally as optimism was dashed by another delay in cementing a crucial bailout for stricken Greece, underscoring how far away Europe is from resolving its debt crisis.
   
    DATA/EVENTS   
    1330 - U.S. Weekly Jobless Claims            
    1330 - U.S. Housing Starts/Building Permits For January    
    1330 - U.S. PPI/Core PPI for January    
    1400 - Federal Reserve Chairman Bernanke speaks   
    1500 - U.S. Treasury Secretary Geithner testifies    
    1500 - Phila. Fed Business Activity Index for February   
    1900 - U.S. Treasury Secretary Geithner testifies
       
   PRICES       
                                                             
  Base metals prices at 0113 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8337.25    -32.75     -0.39      9.70
  SHFE CU FUT MAY2    59580      -850     -1.41      7.62
  HG COPPER MAR2     378.95     -1.20     -0.32     10.29
  LME Alum          2194.50     -5.50     -0.25      8.64
  SHFE AL FUT MAY2    16165       -55     -0.34      2.02
  LME Zinc          2014.00      2.00     +0.10      9.16
  SHFE ZN FUT MAY2    15680      -265     -1.66      5.98
  LME Nickel       20075.00      0.00     +0.00      7.30
  LME Lead          2062.00      0.00     +0.00      1.33
  SHFE PB FUT      15700.00   -190.00     -1.20      2.72
  LME Tin          24595.00      0.00     +0.00     28.10
  LME/Shanghai arb^    1872
 
   Shanghai and COMEX contracts show most active months
 ($1 = 6.3000 Chinese yuan)
 

Key Words:  copper;fall Thursday