LME Copper Edges Off 1-Week Low Ahead of US Data-Shanghai Metals Market

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LME Copper Edges Off 1-Week Low Ahead of US Data

Industry News 10:59:07AM May 04, 2012 Source:SMM

SINGAPORE, May 4 (Reuters) - London copper edged up on Friday, after touching one-week lows in the previous session, although the modest gains reflect caution ahead of a key U.S. jobs report after a recent spate of soft data underscored the fragility of the U.S. recovery. 
   
Fundamentals
Three-month copper on the London Metal Exchange edged up $16 to $8,245 a tonne by 0135 GMT, after hitting a one-week low of $8,200 on Thursday. 

Copper is down around 2 percent for the week so far, on track for its first weekly loss in three, as recent patchy economic data in big copper consumers China and the United States as well as a deepening slump in the euro zone cast doubts on the outlook for raw material demand. 

The most-traded copper contract for August delivery on the Shanghai Futures Exchange was nearly flat at 58,110 yuan ($9,200) a tonne. 

U.S. services employment declined in April to its lowest level since December, tempering the impact of another set of numbers that pointed to the biggest weekly fall in jobless claims since May 2011.
 
The mixed labor market indicators precede Friday's much watched payrolls report in which analysts expect to see a rebound in hiring during April.  

U.S. businesses outside the farm sector are expected to have added 170,000 jobs last month, according to a Reuters survey, after rising a meager 120,000 in March.
 
European Central Bank President Mario Draghi urged euro zone governments to agree a growth strategy to go hand in hand with fiscal discipline, but as thousands of Spaniards protested in the streets he gave no sign the bank would do more to address people's fears about the economy.  

Indonesia will impose a new export tax on metal ores and prohibit the shipment of raw minerals unless miners submit plans to build smelters, in a decision likely to shake up mining in one of the world's major metals exporters.  

Contract workers late on Thursday ended a partial blockade on roads to Chile's giant Escondida mine, a union leader told Reuters, in a short disruption that both he and majority owner BHP Billiton said had not affected output at the world's No. 1 copper mine.  

Miner Rio Tinto has told investors it is listening to their worries over spending on major new projects, even as it warned of the ensuing risks to supply, as soaring costs and clamoring stakeholders eat away at incentives to build mines.
  
Market News 
Asian shares fell for a second successive day on Friday as another batch of lackluster U.S. data stoked concerns that the recovery in the world's biggest economy is faltering.
  
Commodities fell broadly for a second day on Thursday, with U.S. crude oil posting its biggest one-day loss in more than four months, after weak U.S. economic data sparked concern about the outlook for demand.
       
    DATA/EVENTS (GMT)
    0230 China HSBC Services PMI   Apr            
    0758 EZ Markit Services PMI    Apr            
    1230 U.S. Non-farm payrolls    Apr                
    1930 U.S. CFTC commitment of traders data Wkly   
         
  Base metals prices at 0135 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8245.00     16.00     +0.19      8.49
  SHFE CU FUT JUL2    58110        10     +0.02      4.97
  HG COPPER JUL2     374.90      1.30     +0.35      9.11
  LME Alum          2093.00      3.50     +0.17      3.61
  SHFE AL FUT AUG2    16320       -25     -0.15      3.00
  LME Zinc          2004.00     20.00     +1.01      8.62
  SHFE ZN FUT JUL2    15575       -35     -0.22      5.27
  LME Nickel       17430.00    155.00     +0.90     -6.84
  LME Lead          2098.00      6.00     +0.29      3.10
  SHFE PB FUT      15785.00    -45.00     -0.28      3.27
  LME Tin          21805.00      0.00     +0.00     13.57
  LME/Shanghai arb^    2675
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3050 Chinese yuan) 
 
 

LME Copper Edges Off 1-Week Low Ahead of US Data

Industry News 10:59:07AM May 04, 2012 Source:SMM

SINGAPORE, May 4 (Reuters) - London copper edged up on Friday, after touching one-week lows in the previous session, although the modest gains reflect caution ahead of a key U.S. jobs report after a recent spate of soft data underscored the fragility of the U.S. recovery. 
   
Fundamentals
Three-month copper on the London Metal Exchange edged up $16 to $8,245 a tonne by 0135 GMT, after hitting a one-week low of $8,200 on Thursday. 

Copper is down around 2 percent for the week so far, on track for its first weekly loss in three, as recent patchy economic data in big copper consumers China and the United States as well as a deepening slump in the euro zone cast doubts on the outlook for raw material demand. 

The most-traded copper contract for August delivery on the Shanghai Futures Exchange was nearly flat at 58,110 yuan ($9,200) a tonne. 

U.S. services employment declined in April to its lowest level since December, tempering the impact of another set of numbers that pointed to the biggest weekly fall in jobless claims since May 2011.
 
The mixed labor market indicators precede Friday's much watched payrolls report in which analysts expect to see a rebound in hiring during April.  

U.S. businesses outside the farm sector are expected to have added 170,000 jobs last month, according to a Reuters survey, after rising a meager 120,000 in March.
 
European Central Bank President Mario Draghi urged euro zone governments to agree a growth strategy to go hand in hand with fiscal discipline, but as thousands of Spaniards protested in the streets he gave no sign the bank would do more to address people's fears about the economy.  

Indonesia will impose a new export tax on metal ores and prohibit the shipment of raw minerals unless miners submit plans to build smelters, in a decision likely to shake up mining in one of the world's major metals exporters.  

Contract workers late on Thursday ended a partial blockade on roads to Chile's giant Escondida mine, a union leader told Reuters, in a short disruption that both he and majority owner BHP Billiton said had not affected output at the world's No. 1 copper mine.  

Miner Rio Tinto has told investors it is listening to their worries over spending on major new projects, even as it warned of the ensuing risks to supply, as soaring costs and clamoring stakeholders eat away at incentives to build mines.
  
Market News 
Asian shares fell for a second successive day on Friday as another batch of lackluster U.S. data stoked concerns that the recovery in the world's biggest economy is faltering.
  
Commodities fell broadly for a second day on Thursday, with U.S. crude oil posting its biggest one-day loss in more than four months, after weak U.S. economic data sparked concern about the outlook for demand.
       
    DATA/EVENTS (GMT)
    0230 China HSBC Services PMI   Apr            
    0758 EZ Markit Services PMI    Apr            
    1230 U.S. Non-farm payrolls    Apr                
    1930 U.S. CFTC commitment of traders data Wkly   
         
  Base metals prices at 0135 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8245.00     16.00     +0.19      8.49
  SHFE CU FUT JUL2    58110        10     +0.02      4.97
  HG COPPER JUL2     374.90      1.30     +0.35      9.11
  LME Alum          2093.00      3.50     +0.17      3.61
  SHFE AL FUT AUG2    16320       -25     -0.15      3.00
  LME Zinc          2004.00     20.00     +1.01      8.62
  SHFE ZN FUT JUL2    15575       -35     -0.22      5.27
  LME Nickel       17430.00    155.00     +0.90     -6.84
  LME Lead          2098.00      6.00     +0.29      3.10
  SHFE PB FUT      15785.00    -45.00     -0.28      3.27
  LME Tin          21805.00      0.00     +0.00     13.57
  LME/Shanghai arb^    2675
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3050 Chinese yuan)