Copper Falls on Cooling Chinese Economy

SMM Insight 10:15:26AM Apr 10, 2012 Source:SMM

SHANGHAI, April 10 (Reuters) - Copper retreated on Tuesday as investors digested data showing a rise in China's inflation rate, while anticipating more figures indicating a slowdown in the country's import and export numbers due later in the day.    

The spate of gloomy Chinese data has been in line with analysts' view that the world's second-largest economy is cooling, not crashing, which accounts for the modest losses in base metals.    
                  
Fundamentals
Three-month copper on the London Metal Exchange fell 0.4 percent to $8,325 tonne by 0121 GMT, after rising 0.1 percent at its previous session last Thursday ahead of the Easter break.   
The most-active February copper contract on the Shanghai Futures Exchange inched down 0.02 percent to 59,830 yuan ($9,500) per tonne, after falling 0.1 percent on Monday.   

China's imports of most commodities, including crude oil and copper, are set to slow in March from February, reflecting weaker economic activity as distortions caused by the Lunar New Year holiday dissipate, traders and analysts said on Monday.
    
China's annual inflation rate jumped more than expected in March to 3.6 percent as food prices remained volatile, but economists believe price pressures will moderate over the rest of the year, giving Beijing the flexibility to ease monetary policy to support growth.    

Most major Wall Street firms expect anemic growth in the U.S. jobs market and a struggling economic recovery to force the Federal Reserve to undertake another massive round of monetary stimulus, a Reuters poll found on Monday.    
       
Market News   
Global stocks and crude oil fell on Monday after data released last week showed a sharp slowdown in U.S. jobs growth, raising concerns about the strength of the world's largest economy.    

The euro was largely steady against the dollar on Tuesday as the market awaits China's trade data and an announcement by the Bank of Japan following a two-day monetary policy meeting.    

DATA/EVENTS (GMT):   
2030  China  Exports yy            Mar             
::    China  Imports yy            Mar             
::    China  Trade balance         Mar             
0245  France Industrial output mm  Mar             
1950  Japan  Bank lending yy                       
    
                                                             
  Base metals prices at 0121 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8325.00    -36.00     -0.43      9.54
  SHFE CU FUT JUL2    59830       -10     -0.02      7.55
  LME Alum          2119.75     10.75     +0.51      4.94
  SHFE AL FUT JUL2    16255        10     +0.06      2.62
  HG COPPER MAY2     377.15      5.15     +1.38      9.76
  LME Zinc          2018.50     15.50     +0.77      9.40
  SHFE ZN FUT JUL2    15685        50     +0.32      6.02
  LME Nickel       18201.00   -204.00     -1.11     -2.72
  LME Lead          2056.00     -3.50     -0.17      1.03
  SHFE PB FUT         15650        70     +0.45      2.35
  LME Tin          23100.00    -75.00     -0.32     20.31
  LME/Shanghai arb    1721
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
 third month
    
($1 = 6.3085 Chinese yuan)   
 

Copper Falls on Cooling Chinese Economy

SMM Insight 10:15:26AM Apr 10, 2012 Source:SMM

SHANGHAI, April 10 (Reuters) - Copper retreated on Tuesday as investors digested data showing a rise in China's inflation rate, while anticipating more figures indicating a slowdown in the country's import and export numbers due later in the day.    

The spate of gloomy Chinese data has been in line with analysts' view that the world's second-largest economy is cooling, not crashing, which accounts for the modest losses in base metals.    
                  
Fundamentals
Three-month copper on the London Metal Exchange fell 0.4 percent to $8,325 tonne by 0121 GMT, after rising 0.1 percent at its previous session last Thursday ahead of the Easter break.   
The most-active February copper contract on the Shanghai Futures Exchange inched down 0.02 percent to 59,830 yuan ($9,500) per tonne, after falling 0.1 percent on Monday.   

China's imports of most commodities, including crude oil and copper, are set to slow in March from February, reflecting weaker economic activity as distortions caused by the Lunar New Year holiday dissipate, traders and analysts said on Monday.
    
China's annual inflation rate jumped more than expected in March to 3.6 percent as food prices remained volatile, but economists believe price pressures will moderate over the rest of the year, giving Beijing the flexibility to ease monetary policy to support growth.    

Most major Wall Street firms expect anemic growth in the U.S. jobs market and a struggling economic recovery to force the Federal Reserve to undertake another massive round of monetary stimulus, a Reuters poll found on Monday.    
       
Market News   
Global stocks and crude oil fell on Monday after data released last week showed a sharp slowdown in U.S. jobs growth, raising concerns about the strength of the world's largest economy.    

The euro was largely steady against the dollar on Tuesday as the market awaits China's trade data and an announcement by the Bank of Japan following a two-day monetary policy meeting.    

DATA/EVENTS (GMT):   
2030  China  Exports yy            Mar             
::    China  Imports yy            Mar             
::    China  Trade balance         Mar             
0245  France Industrial output mm  Mar             
1950  Japan  Bank lending yy                       
    
                                                             
  Base metals prices at 0121 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8325.00    -36.00     -0.43      9.54
  SHFE CU FUT JUL2    59830       -10     -0.02      7.55
  LME Alum          2119.75     10.75     +0.51      4.94
  SHFE AL FUT JUL2    16255        10     +0.06      2.62
  HG COPPER MAY2     377.15      5.15     +1.38      9.76
  LME Zinc          2018.50     15.50     +0.77      9.40
  SHFE ZN FUT JUL2    15685        50     +0.32      6.02
  LME Nickel       18201.00   -204.00     -1.11     -2.72
  LME Lead          2056.00     -3.50     -0.17      1.03
  SHFE PB FUT         15650        70     +0.45      2.35
  LME Tin          23100.00    -75.00     -0.32     20.31
  LME/Shanghai arb    1721
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
 third month
    
($1 = 6.3085 Chinese yuan)