Metals News
Copper Rebounds Off $8,000; Capped by Europe Worries
industry news
May 9,2012

SHANGHAI, May 9 (Reuters) - London copper futures inched up on Wednesday, after hitting two-week lows near $8,000 a tonne in the previous session, ahead of Chinese data this week, which is likely to show the economy of the world's top copper user has bottomed out as inflation slows and output picks up. 

But gains may be limited as worries about the impact of political turmoil in Greece and the euro zone debt crisis, which caused a sell off in commodities on Tuesday, persist.
Greece was struggling to form a government several days after elections, raising the risk that a hard-won bailout could be nullified. 
Three-month copper on the London Metal Exchange rose 0.3 percent to $8,118.75 a tonne by 0133 GMT, after falling 1 percent on Tuesday. 

The most-active August copper contract on the Shanghai Futures Exchange fell 0.5 percent to 57,380 yuan($9,100) a tonne, after edging up 0.1 percent in the previous session.
Greece sank deeper into crisis on Tuesday when the Leftist candidate for prime minister set conditions for a new coalition which the biggest party said would destroy the country.
European central bankers pushed back on Tuesday against pressure to do more to shore up the euro zone, placing the threshold for fresh policy action a lot higher than market jitters over Greece's inconclusive election.  

On a more positive note, German industry output shot up far more than expected in March after a weak winter, lifting hopes Europe's biggest economy will gather steam this year and highlighting its economic divergence with much of the rest of the euro zone.  

Also, France's Socialist president-elect Francois Hollande may use a summer audit of state finances to water down his generous campaign promises rather than risk a backlash from financial markets against stubbornly high deficits and rising debt.  

Investors are eyeing key data from China this week, including figures for trade, inflation and industrial output.
In industry news, the LME has received a number of detailed proposals from a short-list of bidders regarding a potential acquisition of the exchange, it said on Tuesday.
Market News 
Asian shares fell and the euro stayed pressured on Wednesday, as political uncertainty continued to surround leadership changes in Greece and French.  

The euro fell for a seventh straight session against the dollar on Tuesday.  
0600  Germany trade data for March         
1100  U.S.  Mortgage market index          
1400  U.S.  Wholesale inventories  March   
  Base metals prices at 0133 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8118.75     23.75     +0.29      6.83
  SHFE CU FUT AUG2    57380      -270     -0.47      3.15
  LME Alum          2062.75      5.75     +0.28      2.12
  SHFE AL FUT AUG2    16165       -75     -0.46      2.05
  HG COPPER JUL2     368.75      1.00     +0.27      7.32
  LME Zinc          1985.00     10.00     +0.51      7.59
  SHFE ZN FUT AUG2    15415       -50     -0.32      4.19
  LME Nickel       17400.00     45.00     +0.26     -7.00
  LME Lead          2090.00      0.00     +0.00      2.70
  SHFE PB FUT         15700        -5     -0.03      2.68
  LME Tin          21400.00   -100.00     -0.47     11.46
  LME/Shanghai arb    2364
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3080 Chinese yuan) 

London copper Wednesday; rebound
For queries, please contact Frank LIU at
For more information on how to access our research reports, please email
Related Price

No Data