Copper Slips after Rally, China Data-Shanghai Metals Market

Hot Keywords

  • Zinc
  • Copper
  • Aluminium
  • Inventory data
  • MMi Iron Ore Port Index
  • Lead
  • Futures movement
  • New Energy Vehicle
  • Silicon
  • Prebaked anode
  • Nickel
  • Evening comments
  • NEV
  • Production data
  • Market commentary

Copper Slips after Rally, China Data

Industry News 01:23:51PM Feb 22, 2012 Source:SMM

SINGAPORE, Feb 22 (Reuters) - London copper softened a touch on Wednesday, as investors took a breather after a 2.6 percent rally in the previous session, while lingering concerns about Greece and the contraction in China's manufacturing sector kept the mood cautious.   

China's HSBC flash manufacturing survey data released earlier in the day showed the sector contracted in February for the fourth straight month and new export orders dropped sharply. although the purchasing manager index (PMI) also rose to a four-month high of 49.7 in February.    

"Copper prices are likely to remain rangebound in the short term, before we see any improvement in demand," said a Shanghai-based trader.   

"But in the medium term, copper has a chance to break higher with seasonal demand picking up and liquidity in China increasing."   

Three-month copper on the London Metal Exchange  edged down 0.4 percent to $8,419.50 a tonne by 0258 GMT, after rising 2.6 percent on Tuesday, its biggest single-day gain since Feb. 3.   

Copper has gained more than 10 percent so far this year, hitting a five-month top this month as worries about the euro zone debt crisis abated, but doubts remained over Greece's capacity to implement punishing reforms to cut its debt mountain, rebuild its economy and avoid a default in the longer term.   

The most-traded May copper contract on the Shanghai Futures Exchange gained half a percent to 60,370 yuan ($9,600) a tonne.   

Wang Chenyu, an analyst at Minmetals Futures, said he expects Shanghai copper to test the earlier high around 62,200 yuan in the short term.   

"The month-on-month progress of the HSBC PMI data will help the rebound in metals prices in the short term, coinciding with improved sentiment after euro zone settled the Greece bailout," said Wang.   

China's copper demand has been slack with stocks in Shanghai warehouses hitting their highest level in nearly a decade last week and analysts warned the country's imports are likely to remain weak until March.           
        
 Base metals prices at 0258 GMT
  Metal              Last       Change   Pct Move YTD pct
 chg
  LME Cu            8419.50    -29.50     -0.35     10.78
  SHFE CU FUT MAY2    60370       320     +0.53      9.05
  HG COPPER MAR2     382.20     -1.45     -0.38     11.23
  LME Alum          2245.50     -9.50     -0.42     11.16
  SHFE AL FUT MAY2    16210        30     +0.19      2.30
  LME Zinc          2028.00      0.00     +0.00      9.92
  SHFE ZN FUT MAY2    15790        10     +0.06      6.73
  LME Nickel       20300.00     70.00     +0.35      8.50
  LME Lead          2102.00    -15.00     -0.71      3.29
  SHFE PB FUT      15795.00    -25.00     -0.16      3.34
  LME Tin          24300.00    110.00     +0.45     26.56
  LME/Shanghai arb^    1651
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT,
 minus SHFE third month
    
($1 = 6.2964 Chinese yuan)
 

Price

more
#1 Refined Cu
Apr.18
49600.0
40.0
(0.08%)
Yangshan Copper Premium(Bill of Lading)
Apr.18
51.5
0.0
(0.00%)
Yangshan Copper Premium(Warehouse Warrant)
Apr.18
50.5
-1.0
(-1.94%)
Imported Cu Concentrate TC(Cu≥26%,Week)
Apr.12
68.5
-0.5
(-0.72%)
Imported Cu Concentrate TC(Cu≥26%,Month)
Mar.29
73.5
-6.0
(-7.55%)

Copper Slips after Rally, China Data

Industry News 01:23:51PM Feb 22, 2012 Source:SMM

SINGAPORE, Feb 22 (Reuters) - London copper softened a touch on Wednesday, as investors took a breather after a 2.6 percent rally in the previous session, while lingering concerns about Greece and the contraction in China's manufacturing sector kept the mood cautious.   

China's HSBC flash manufacturing survey data released earlier in the day showed the sector contracted in February for the fourth straight month and new export orders dropped sharply. although the purchasing manager index (PMI) also rose to a four-month high of 49.7 in February.    

"Copper prices are likely to remain rangebound in the short term, before we see any improvement in demand," said a Shanghai-based trader.   

"But in the medium term, copper has a chance to break higher with seasonal demand picking up and liquidity in China increasing."   

Three-month copper on the London Metal Exchange  edged down 0.4 percent to $8,419.50 a tonne by 0258 GMT, after rising 2.6 percent on Tuesday, its biggest single-day gain since Feb. 3.   

Copper has gained more than 10 percent so far this year, hitting a five-month top this month as worries about the euro zone debt crisis abated, but doubts remained over Greece's capacity to implement punishing reforms to cut its debt mountain, rebuild its economy and avoid a default in the longer term.   

The most-traded May copper contract on the Shanghai Futures Exchange gained half a percent to 60,370 yuan ($9,600) a tonne.   

Wang Chenyu, an analyst at Minmetals Futures, said he expects Shanghai copper to test the earlier high around 62,200 yuan in the short term.   

"The month-on-month progress of the HSBC PMI data will help the rebound in metals prices in the short term, coinciding with improved sentiment after euro zone settled the Greece bailout," said Wang.   

China's copper demand has been slack with stocks in Shanghai warehouses hitting their highest level in nearly a decade last week and analysts warned the country's imports are likely to remain weak until March.           
        
 Base metals prices at 0258 GMT
  Metal              Last       Change   Pct Move YTD pct
 chg
  LME Cu            8419.50    -29.50     -0.35     10.78
  SHFE CU FUT MAY2    60370       320     +0.53      9.05
  HG COPPER MAR2     382.20     -1.45     -0.38     11.23
  LME Alum          2245.50     -9.50     -0.42     11.16
  SHFE AL FUT MAY2    16210        30     +0.19      2.30
  LME Zinc          2028.00      0.00     +0.00      9.92
  SHFE ZN FUT MAY2    15790        10     +0.06      6.73
  LME Nickel       20300.00     70.00     +0.35      8.50
  LME Lead          2102.00    -15.00     -0.71      3.29
  SHFE PB FUT      15795.00    -25.00     -0.16      3.34
  LME Tin          24300.00    110.00     +0.45     26.56
  LME/Shanghai arb^    1651
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT,
 minus SHFE third month
    
($1 = 6.2964 Chinese yuan)