Copper Rebounds, Eyeing Best Week in a Month

Industry News 10:12:11AM Feb 24, 2012 Source:SMM

SINGAPORE, Feb 24 (Reuters) - London copper bounced back on Friday after two days of losses as upbeat U.S. data helped revive buying interest in the metal which is headed for its best weekly showing in a month.   

But copper's gains are being kept in check by rising oil prices and the shaky euro zone economy.   
   
Fundamentals

Three-month copper on the London Metal Exchange rose half a percent to $8,434.25 a tonne by 0124 GMT.   

Copper is up 3.1 percent for the week so far, its biggest gain since the last week of January, after rallying on Tuesday along with other commodities after Greece secured its second bailout package.      

There was further evidence of the U.S. economy healing after data on Thursday showed the number of Americans filing new claims for jobless benefits last week held at the lowest level since the early days of the 2007-2009 recession and that U.S. home prices rose 0.7 percent in December.  
    
But the euro zone economy is heading into its second recession in just three years and the wider European Union will stagnate, the EU's executive said, warning that the currency area has yet to break its vicious cycle of debt.    

The weaker economic outlook in the Europe and Chinese manufacturing activity survey cut short copper's rally earlier in the week. The fact that losses had been modest in the past two days meant there's underlying strength building in the background which could be well spurred by any sign of pickup in Chinese demand.    

The most-traded May copper contract on the Shanghai Futures Exchange was little changed at 60,440 yuan ($9,600) a tonne.   

China's imports of copper concentrate are expected to rise by about 10 percent in 2012 on strong smelter demand, curbing end-users' appetite for overseas purchases of the refined metal, traders and analysts said.    

Intimidation and violence by some workers against others who did not take part in last year's three-month strike at Freeport-McMoRan Copper & Gold Inc's vast Grasberg gold mine have interrupted resumption of normal operations, the company said.    
  
Markets News  
 
The euro hovered at 2-1/2-month highs on Friday, holding on to chunky gains made the day before after data on improving German business sentiment prompted traders to cover short positions.    

Wall Street stocks rose after data showed the U.S. labor market remained on the mend, but the market stalled as it approached highs not seen since before the 2008 collapse of Lehman Brothers.  
 
U.S. crude futures rose toward $109, on track for a third week of gains, as worries about Iranian supply supported prices while upbeat U.S. economic data lifted the demand outlook at the world's largest oil consumer.    
       
    DATA/EVENTS (GMT)   
    0700 - Germany detailed Q4 GDP   
    1500 - U.S. new home sales for January   
       
  Base metals prices at 0124 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8434.25     44.25     +0.53     10.98
  SHFE CU FUT MAY2    60440        20     +0.03      9.18
  HG COPPER MAR2     382.70      2.10     +0.55     11.38
  LME Alum          2283.00     10.00     +0.44     13.02
  SHFE AL FUT MAY2    16225        00     +0.00      2.40
  LME Zinc          2060.00     12.00     +0.59     11.65
  SHFE ZN FUT MAY2    15905        40     +0.25      7.50
  LME Nickel       20200.00    200.00     +1.00      7.96
  LME Lead          2160.50     -4.50     -0.21      6.17
  SHFE PB FUT      15985.00     85.00     +0.53      4.58
  LME Tin          24150.00    -45.00     -0.19     25.78
  LME/Shanghai arb^    1709
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.2985 Chinese yuan)   
 

Copper Rebounds, Eyeing Best Week in a Month

Industry News 10:12:11AM Feb 24, 2012 Source:SMM

SINGAPORE, Feb 24 (Reuters) - London copper bounced back on Friday after two days of losses as upbeat U.S. data helped revive buying interest in the metal which is headed for its best weekly showing in a month.   

But copper's gains are being kept in check by rising oil prices and the shaky euro zone economy.   
   
Fundamentals

Three-month copper on the London Metal Exchange rose half a percent to $8,434.25 a tonne by 0124 GMT.   

Copper is up 3.1 percent for the week so far, its biggest gain since the last week of January, after rallying on Tuesday along with other commodities after Greece secured its second bailout package.      

There was further evidence of the U.S. economy healing after data on Thursday showed the number of Americans filing new claims for jobless benefits last week held at the lowest level since the early days of the 2007-2009 recession and that U.S. home prices rose 0.7 percent in December.  
    
But the euro zone economy is heading into its second recession in just three years and the wider European Union will stagnate, the EU's executive said, warning that the currency area has yet to break its vicious cycle of debt.    

The weaker economic outlook in the Europe and Chinese manufacturing activity survey cut short copper's rally earlier in the week. The fact that losses had been modest in the past two days meant there's underlying strength building in the background which could be well spurred by any sign of pickup in Chinese demand.    

The most-traded May copper contract on the Shanghai Futures Exchange was little changed at 60,440 yuan ($9,600) a tonne.   

China's imports of copper concentrate are expected to rise by about 10 percent in 2012 on strong smelter demand, curbing end-users' appetite for overseas purchases of the refined metal, traders and analysts said.    

Intimidation and violence by some workers against others who did not take part in last year's three-month strike at Freeport-McMoRan Copper & Gold Inc's vast Grasberg gold mine have interrupted resumption of normal operations, the company said.    
  
Markets News  
 
The euro hovered at 2-1/2-month highs on Friday, holding on to chunky gains made the day before after data on improving German business sentiment prompted traders to cover short positions.    

Wall Street stocks rose after data showed the U.S. labor market remained on the mend, but the market stalled as it approached highs not seen since before the 2008 collapse of Lehman Brothers.  
 
U.S. crude futures rose toward $109, on track for a third week of gains, as worries about Iranian supply supported prices while upbeat U.S. economic data lifted the demand outlook at the world's largest oil consumer.    
       
    DATA/EVENTS (GMT)   
    0700 - Germany detailed Q4 GDP   
    1500 - U.S. new home sales for January   
       
  Base metals prices at 0124 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8434.25     44.25     +0.53     10.98
  SHFE CU FUT MAY2    60440        20     +0.03      9.18
  HG COPPER MAR2     382.70      2.10     +0.55     11.38
  LME Alum          2283.00     10.00     +0.44     13.02
  SHFE AL FUT MAY2    16225        00     +0.00      2.40
  LME Zinc          2060.00     12.00     +0.59     11.65
  SHFE ZN FUT MAY2    15905        40     +0.25      7.50
  LME Nickel       20200.00    200.00     +1.00      7.96
  LME Lead          2160.50     -4.50     -0.21      6.17
  SHFE PB FUT      15985.00     85.00     +0.53      4.58
  LME Tin          24150.00    -45.00     -0.19     25.78
  LME/Shanghai arb^    1709
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.2985 Chinese yuan)