LME Copper Slips for 2nd Day, Economic Woes Abound

Industry News 10:07:19AM Feb 23, 2012 Source:SMM

SINGAPORE, Feb 23 (Reuters) - London copper edged lower for a second day on Thursday as worries over a faltering euro zone economy and a weak manufacturing sector in top copper consumer China made it difficult for investors to stretch this year's rally.   
   
Fundamentals
Three-month copper on the London Metal Exchange eased $6.50 to $8,428.50 a tonne by 0112 GMT, extending marginal losses on Wednesday.  
    
Fresh evidence that the euro zone could slip into recession along with a continued contraction in China's manufacturing sector would make it hard for economy-sensitive copper to sustain or even keep its near 11 percent gain year to date.   

Surveys of purchasing managers showed unexpectedly weak activity in the euro zone's most powerful economy, Germany, and in France. That weakness was echoed in China, where a preliminary purchasing managers' survey showed export orders falling the most in eight months.    

The most-traded May copper contract on the Shanghai Futures Exchange slipped 0.2 percent to 60,350 yuan ($9,600) a tonne.   

Countering poor data in Europe and China, U.S. home resales rose to a 1-1/2-year high in January, pushing the supply of properties on the market to the lowest level in almost seven years in a hopeful sign for the housing sector.    

Expectations of a global copper production deficit are supporting prices but it is unclear when demand will rise, said Germany's Aurubis, Europe's biggest copper producer.
    
Markets News   

The euro stayed firm in Asia on Thursday even after PMI surveys suggested the euro zone might slide back into recession and amid lingering doubts over Greece's recently hard-won bailout deal.    

Banks led U.S. stocks lower on Wednesday as the S&P 500 stalled near a 10-month-high after signs of weak European business activity rekindled concerns about a recession overseas.
    
U.S. crude oil futures eased after industry data showed that U.S. crude stockpiles rose much more than expected last week.
       
    DATA/EVENTS (GMT)   
    0800  ECB Meeting       
    0900  Germany   Ifo business climate    Feb       
    0900  Germany   Ifo current conditions  Feb       
    0900  Germany   Ifo expectations        Feb      
    1330  U.S. weekly jobless claims     
    1500  U.S.      New home sales          Jan       
           
  Base metals prices at 0112 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8428.50     -6.50     -0.08     10.90
  SHFE CU FUT MAY2    60350      -140     -0.23      9.01
  HG COPPER MAR2     382.40     -0.95     -0.25     11.29
  LME Alum          2272.00     -8.00     -0.35     12.48
  SHFE AL FUT MAY2    16235       -15     -0.09      2.46
  LME Zinc          2051.50    -15.50     -0.75     11.19
  SHFE ZN FUT MAY2    15855        30     +0.19      7.16
  LME Nickel       20140.00     40.00     +0.20      7.64
  LME Lead          2132.00    -16.50     -0.77      4.77
  SHFE PB FUT      15880.00     60.00     +0.38      3.89
  LME Tin          24050.00      0.00     +0.00     25.26
  LME/Shanghai arb^    1727
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
  
($1 = 6.2960 Chinese yuan)   
 

LME Copper Slips for 2nd Day, Economic Woes Abound

Industry News 10:07:19AM Feb 23, 2012 Source:SMM

SINGAPORE, Feb 23 (Reuters) - London copper edged lower for a second day on Thursday as worries over a faltering euro zone economy and a weak manufacturing sector in top copper consumer China made it difficult for investors to stretch this year's rally.   
   
Fundamentals
Three-month copper on the London Metal Exchange eased $6.50 to $8,428.50 a tonne by 0112 GMT, extending marginal losses on Wednesday.  
    
Fresh evidence that the euro zone could slip into recession along with a continued contraction in China's manufacturing sector would make it hard for economy-sensitive copper to sustain or even keep its near 11 percent gain year to date.   

Surveys of purchasing managers showed unexpectedly weak activity in the euro zone's most powerful economy, Germany, and in France. That weakness was echoed in China, where a preliminary purchasing managers' survey showed export orders falling the most in eight months.    

The most-traded May copper contract on the Shanghai Futures Exchange slipped 0.2 percent to 60,350 yuan ($9,600) a tonne.   

Countering poor data in Europe and China, U.S. home resales rose to a 1-1/2-year high in January, pushing the supply of properties on the market to the lowest level in almost seven years in a hopeful sign for the housing sector.    

Expectations of a global copper production deficit are supporting prices but it is unclear when demand will rise, said Germany's Aurubis, Europe's biggest copper producer.
    
Markets News   

The euro stayed firm in Asia on Thursday even after PMI surveys suggested the euro zone might slide back into recession and amid lingering doubts over Greece's recently hard-won bailout deal.    

Banks led U.S. stocks lower on Wednesday as the S&P 500 stalled near a 10-month-high after signs of weak European business activity rekindled concerns about a recession overseas.
    
U.S. crude oil futures eased after industry data showed that U.S. crude stockpiles rose much more than expected last week.
       
    DATA/EVENTS (GMT)   
    0800  ECB Meeting       
    0900  Germany   Ifo business climate    Feb       
    0900  Germany   Ifo current conditions  Feb       
    0900  Germany   Ifo expectations        Feb      
    1330  U.S. weekly jobless claims     
    1500  U.S.      New home sales          Jan       
           
  Base metals prices at 0112 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8428.50     -6.50     -0.08     10.90
  SHFE CU FUT MAY2    60350      -140     -0.23      9.01
  HG COPPER MAR2     382.40     -0.95     -0.25     11.29
  LME Alum          2272.00     -8.00     -0.35     12.48
  SHFE AL FUT MAY2    16235       -15     -0.09      2.46
  LME Zinc          2051.50    -15.50     -0.75     11.19
  SHFE ZN FUT MAY2    15855        30     +0.19      7.16
  LME Nickel       20140.00     40.00     +0.20      7.64
  LME Lead          2132.00    -16.50     -0.77      4.77
  SHFE PB FUT      15880.00     60.00     +0.38      3.89
  LME Tin          24050.00      0.00     +0.00     25.26
  LME/Shanghai arb^    1727
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
  
($1 = 6.2960 Chinese yuan)