LME Copper Falls on Weight of Weaker Global Outlook-Shanghai Metals Market

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LME Copper Falls on Weight of Weaker Global Outlook

Industry News 09:51:01AM Feb 27, 2012 Source:SMM

SINGAPORE, Feb 27 (Reuters) - London copper futures fell for a third time in four sessions on Monday as high oil prices threatened to hurt an already fragile global economy, weakening the outlook for industrial metal demand.   
   
Fundamentals    
Three-month copper on the London Metal Exchange dropped 0.6 percent to $8,480 a tonne by 0119 GMT, after posting its best week since mid-January last week.   

The most-traded May copper contract on the Shanghai Futures Exchange rose 1.3 percent to 60,370 yuan ($9,600) a tonne, chasing the LME's gains on Friday.   

Rising energy prices, which touched 10-month highs last week, raised the spectre of global recession with Europe probably having the most to fear as its fragile economic growth falters.   
Those concerns add to worry about demand from top copper user China whose physical demand has yet to pick up strongly since the Lunar New Year break in January.   

Advance data last week already pointed to China's factory sector contracting for a fourth straight month in February as new export orders shrank, suggesting any seasonal recovery in copper demand could be slow.    

The one bright spot is the U.S. economy, which has shown signs of improvement. More evidence came through on Friday as upward revisions of new U.S. home sales in prior months and a drop in the supply of properties on the market added to signs of a budding housing recovery.   

A separate report on Friday showed U.S. consumer confidence hit its highest point in a year this month despite a strong rise in gasoline prices.    

Elsewhere, leading economies told Europe it must put up extra money to fight its debt crisis if it wants more help from the rest of the world, piling pressure on Germany to drop its opposition to a bigger European bailout.   
   
Markets News   

The yen slid to a new seven-month low against the dollar in Asia on Monday, while the euro held remarkably firm as investors continued to unwind negative bets against the single currency ahead of a fresh injection of liquidity by the European Central Bank.    

The S&P 500 rose on Friday to close at the highest level since before the collapse of Lehman Brothers in 2008, continuing a pattern of steady gains on signs of U.S. economic recovery.
    
Oil prices held near 10-month highs over supply concerns as tension worsened over Iran's disputed nuclear programme.    
    
    DATA/EVENTS (GMT)   
    0500  U.S.   Build permits R chg mm       Dec  
     
    0900  EZ     Money-M3 3m moving av        Jan      
    1500  U.S.   Pending home sales           Jan    
           
  Base metals prices at 0119 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8480.00    -50.50     -0.59     11.58
  SHFE CU FUT MAY2    60370       750     +1.26      9.05
  HG COPPER MAR2     385.50     -0.85     -0.21     12.19
  LME Alum          2316.25    -11.75     -0.50     14.67
  SHFE AL FUT MAY2    16240        80     +0.50      2.49
  LME Zinc          2070.50     -9.50     -0.46     12.22
  SHFE ZN FUT MAY2    15920       115     +0.73      7.60
  LME Nickel       20200.00     25.00     +0.12      7.96
  LME Lead          2198.00    -10.00     -0.45      8.01
  SHFE PB FUT      16165.00    175.00     +1.09      5.76
  LME Tin          23850.00      0.00     +0.00     24.22
  LME/Shanghai arb^    2096
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
        
($1=6.2978 Chinese yuan)   
   
 

Price

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62% Fe Fines (Qingdao Port): IOPI62
Apr.22
685.0
16.0
(2.39%)
62% Fe Fines (Qingdao Port, CFR Equiv.)
Apr.22
94.3
2.3
(2.51%)
58% Fe Fines (Qingdao Port): IOPI58
Apr.22
603.0
2.0
(0.33%)
58% Fe Fines (Qingdao Port, CFR Equiv.)
Apr.22
82.5
0.3
(0.36%)
65% Fe Fines (Qingdao Port): IOPI65
Apr.22
794.0
17.0
(2.19%)

LME Copper Falls on Weight of Weaker Global Outlook

Industry News 09:51:01AM Feb 27, 2012 Source:SMM

SINGAPORE, Feb 27 (Reuters) - London copper futures fell for a third time in four sessions on Monday as high oil prices threatened to hurt an already fragile global economy, weakening the outlook for industrial metal demand.   
   
Fundamentals    
Three-month copper on the London Metal Exchange dropped 0.6 percent to $8,480 a tonne by 0119 GMT, after posting its best week since mid-January last week.   

The most-traded May copper contract on the Shanghai Futures Exchange rose 1.3 percent to 60,370 yuan ($9,600) a tonne, chasing the LME's gains on Friday.   

Rising energy prices, which touched 10-month highs last week, raised the spectre of global recession with Europe probably having the most to fear as its fragile economic growth falters.   
Those concerns add to worry about demand from top copper user China whose physical demand has yet to pick up strongly since the Lunar New Year break in January.   

Advance data last week already pointed to China's factory sector contracting for a fourth straight month in February as new export orders shrank, suggesting any seasonal recovery in copper demand could be slow.    

The one bright spot is the U.S. economy, which has shown signs of improvement. More evidence came through on Friday as upward revisions of new U.S. home sales in prior months and a drop in the supply of properties on the market added to signs of a budding housing recovery.   

A separate report on Friday showed U.S. consumer confidence hit its highest point in a year this month despite a strong rise in gasoline prices.    

Elsewhere, leading economies told Europe it must put up extra money to fight its debt crisis if it wants more help from the rest of the world, piling pressure on Germany to drop its opposition to a bigger European bailout.   
   
Markets News   

The yen slid to a new seven-month low against the dollar in Asia on Monday, while the euro held remarkably firm as investors continued to unwind negative bets against the single currency ahead of a fresh injection of liquidity by the European Central Bank.    

The S&P 500 rose on Friday to close at the highest level since before the collapse of Lehman Brothers in 2008, continuing a pattern of steady gains on signs of U.S. economic recovery.
    
Oil prices held near 10-month highs over supply concerns as tension worsened over Iran's disputed nuclear programme.    
    
    DATA/EVENTS (GMT)   
    0500  U.S.   Build permits R chg mm       Dec  
     
    0900  EZ     Money-M3 3m moving av        Jan      
    1500  U.S.   Pending home sales           Jan    
           
  Base metals prices at 0119 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8480.00    -50.50     -0.59     11.58
  SHFE CU FUT MAY2    60370       750     +1.26      9.05
  HG COPPER MAR2     385.50     -0.85     -0.21     12.19
  LME Alum          2316.25    -11.75     -0.50     14.67
  SHFE AL FUT MAY2    16240        80     +0.50      2.49
  LME Zinc          2070.50     -9.50     -0.46     12.22
  SHFE ZN FUT MAY2    15920       115     +0.73      7.60
  LME Nickel       20200.00     25.00     +0.12      7.96
  LME Lead          2198.00    -10.00     -0.45      8.01
  SHFE PB FUT      16165.00    175.00     +1.09      5.76
  LME Tin          23850.00      0.00     +0.00     24.22
  LME/Shanghai arb^    2096
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
        
($1=6.2978 Chinese yuan)