Copper Gains for Second Day; Greece Deal Eyed-Shanghai Metals Market

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Copper Gains for Second Day; Greece Deal Eyed

Industry News 09:53:31AM Feb 21, 2012 Source:SMM

SINGAPORE, Feb 21 (Reuters) - London copper futures edged higher for a second day on Tuesday, spurred by hopes Greece will soon clinch a second bailout deal although gains looked tentative amid slow demand from top consumer China.   
   
Fundamentals    

Three-month copper on the London Metal Exchange rose 0.8 percent to $8,301.75 a tonne by 0112 GMT, extending Monday's modest gains.   

LME copper ended a six-day losing streak in the previous session as investors cheered China's first bank reserve requirement ratio (RRR) cut this year, joining global counterparts in easing credit conditions to spur its economy.   

While many expected the cut to happen as early as January, it nevertheless showed China's resolve to ensure a soft landing for its economy. Another RRR reduction is seen in the second quarter, but unless China loosens its grip on its property market, analysts are unsure whether RRR cuts would be enough to boost demand, particularly for industrial metals.
    
In a sign Chinese demand remains slack, copper stocks in warehouses monitored by the Shanghai Futures Exchange jumped to their highest in nearly a decade last week.    

The most-traded May copper contract on the Shanghai Futures Exchange gained 0.4 percent to 59,570 yuan a tonne.   

Euro zone finance ministers moved towards approving a second bailout for debt-laden Greece that would resolve Athens' immediate repayment needs but seems unlikely to revive the nation's shattered economy.    
  
Markets News  
 
The euro slipped from a one-week high with hopes that euro zone policymakers would approve a bailout for Greece eclipsed by concerns of more uphill battles for Europe to fix its economy.
    
U.S. crude rose above $104 per barrel on Tuesday, less than a dollar away from a nine-month high hit the previous day, as a cut in Iranian oil supply to Europe and an imminent approval for a Greek bailout by the euro zone supported prices.
    
    DATA/EVENTS (GMT)       
    0700 - EU Economic and Financial Affairs Council Meeting in   
           Brussels   
    1330 - Chicago Fed National Activity Index for January
     
  Base metals prices at 0112 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8301.75     66.25     +0.80      9.23
  SHFE CU FUT MAY2    59570       230     +0.39      7.60
  HG COPPER MAR2     376.70      5.90     +1.59      9.63
  LME Alum          2190.00     11.00     +0.50      8.42
  SHFE AL FUT MAY2    16160        25     +0.15      1.99
  LME Zinc          2003.75     21.75     +1.10      8.60
  SHFE ZN FUT MAY2    15680        75     +0.48      5.98
  LME Nickel       19920.00    170.00     +0.86      6.47
  LME Lead          2075.00     24.00     +1.17      1.97
  SHFE PB FUT      15740.00     55.00     +0.35      2.98
  LME Tin          23525.00      0.00     +0.00     22.53
  LME/Shanghai arb^    1635
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
 

Key Words:  copper;Tuesday 

Price

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Aluminum Ingot
Apr.24
14150.0
-50.0
(-0.35%)
Alumina (Averaged)
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2705.0
10.0
(0.37%)
Alumina-East
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2710.0
10.0
(0.37%)
Alumina -Central
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2710.0
10.0
(0.37%)
Alumina - North
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2700.0
10.0
(0.37%)

Copper Gains for Second Day; Greece Deal Eyed

Industry News 09:53:31AM Feb 21, 2012 Source:SMM

SINGAPORE, Feb 21 (Reuters) - London copper futures edged higher for a second day on Tuesday, spurred by hopes Greece will soon clinch a second bailout deal although gains looked tentative amid slow demand from top consumer China.   
   
Fundamentals    

Three-month copper on the London Metal Exchange rose 0.8 percent to $8,301.75 a tonne by 0112 GMT, extending Monday's modest gains.   

LME copper ended a six-day losing streak in the previous session as investors cheered China's first bank reserve requirement ratio (RRR) cut this year, joining global counterparts in easing credit conditions to spur its economy.   

While many expected the cut to happen as early as January, it nevertheless showed China's resolve to ensure a soft landing for its economy. Another RRR reduction is seen in the second quarter, but unless China loosens its grip on its property market, analysts are unsure whether RRR cuts would be enough to boost demand, particularly for industrial metals.
    
In a sign Chinese demand remains slack, copper stocks in warehouses monitored by the Shanghai Futures Exchange jumped to their highest in nearly a decade last week.    

The most-traded May copper contract on the Shanghai Futures Exchange gained 0.4 percent to 59,570 yuan a tonne.   

Euro zone finance ministers moved towards approving a second bailout for debt-laden Greece that would resolve Athens' immediate repayment needs but seems unlikely to revive the nation's shattered economy.    
  
Markets News  
 
The euro slipped from a one-week high with hopes that euro zone policymakers would approve a bailout for Greece eclipsed by concerns of more uphill battles for Europe to fix its economy.
    
U.S. crude rose above $104 per barrel on Tuesday, less than a dollar away from a nine-month high hit the previous day, as a cut in Iranian oil supply to Europe and an imminent approval for a Greek bailout by the euro zone supported prices.
    
    DATA/EVENTS (GMT)       
    0700 - EU Economic and Financial Affairs Council Meeting in   
           Brussels   
    1330 - Chicago Fed National Activity Index for January
     
  Base metals prices at 0112 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8301.75     66.25     +0.80      9.23
  SHFE CU FUT MAY2    59570       230     +0.39      7.60
  HG COPPER MAR2     376.70      5.90     +1.59      9.63
  LME Alum          2190.00     11.00     +0.50      8.42
  SHFE AL FUT MAY2    16160        25     +0.15      1.99
  LME Zinc          2003.75     21.75     +1.10      8.60
  SHFE ZN FUT MAY2    15680        75     +0.48      5.98
  LME Nickel       19920.00    170.00     +0.86      6.47
  LME Lead          2075.00     24.00     +1.17      1.97
  SHFE PB FUT      15740.00     55.00     +0.35      2.98
  LME Tin          23525.00      0.00     +0.00     22.53
  LME/Shanghai arb^    1635
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
 

Key Words:  copper;Tuesday