Copper Firms after China Moves to Buoy Economy-Shanghai Metals Market

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Copper Firms after China Moves to Buoy Economy

Industry News 09:43:08AM May 14, 2012 Source:SMM

SINGAPORE, May 14 (Reuters) - London copper futures edged higher on Monday, bouncing back from the previous session's loss, after top consumer China cut its bank reserve requirement ratio for a third time in six months to boost a slowing economy. 
   
Fundamentals
Three-month copper on the London Metal Exchange gained 0.6 percent to $8,061 per tonne by 0106 GMT after losing more than 1 percent on Friday and falling for a second consecutive week. 

The most-traded August copper contract on the Shanghai Futures Exchange was up 0.2 percent at 57,480 yuan ($9,100) per tonne. 

China's central bank cut the amount of cash that banks are required to hold as reserves on Saturday, freeing an estimated 400 billion yuan ($63.4 billion) for lending after a recent spate of data showed its economy slowed further with the weakest first-quarter growth in nearly three years.  

Some analysts said China should have cut bank reserves after first-quarter data, and that releasing the data over the weekend may reduce the impact with the world's No.2 economy becoming more vulnerable to global weakness. 

China's production of refined copper fell 3.7 percent in April from March, data from the National Bureau of Statistics showed on Friday, indicating the impact of weaker-than-expected domestic demand on smelter operating rates.  

In Greece, political leaders ignored a final plea from the president to form a coalition government to avert a repeat election, pushing Athens closer to bankruptcy and a possible exit from the euro zone.  

Indonesia plans to introduce new quotas to limit mineral exports, and a 20 percent duty on mineral exports by certain companies.  

Market News 
Asian shares eased on Monday as investors saw more reasons to cut risk after talks in Greece to form a new government failed, a German vote pointed to growing opposition to austerity steps, and China took further steps to support growth.
  
U.S. crude prices dropped below $96 per barrel on Monday, pressured by China's slowing economy, the increasing likelihood of a Greek exit from the euro zone, and Saudi's call for higher oil stock levels.  
           
    DATA/EVENTS (GMT) 
    0900  EZ      Industrial production yy   Mar    
  
          China   FDI (ytd)                  May      
         
  Base metals prices at 0106 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8061.00     48.00     +0.60      6.07
  SHFE CU FUT AUG2    57480       140     +0.24      3.83
  HG COPPER JUL2     366.20      1.40     +0.38      6.58
  LME Alum          2052.00      7.00     +0.34      1.58
  SHFE AL FUT AUG2    16110        45     +0.28      1.67
  LME Zinc          1950.00      2.00     +0.10      5.69
  SHFE ZN FUT AUG2    15195        80     +0.53      2.70
  LME Nickel       17300.00    105.00     +0.61     -7.54
  LME Lead          2085.00     13.00     +0.63      2.46
  SHFE PB FUT      15700.00    100.00     +0.64      2.72
  LME Tin          20450.00    -25.00     -0.12      6.51
  LME/Shanghai arb^    1873
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3106 Chinese yuan) 
 

Price

more
#1 Lead
Oct.22
16875.0
-100.0
(-0.59%)
#1 Lead - Guangdong
Oct.22
16825.0
-100.0
(-0.59%)
#1 Lead - Henan
Oct.22
16750.0
-125.0
(-0.74%)
#1 Lead -Tianjin
Oct.22
16825.0
-100.0
(-0.59%)
#2 Lead
Oct.22
16325.0
-150.0
(-0.91%)

Copper Firms after China Moves to Buoy Economy

Industry News 09:43:08AM May 14, 2012 Source:SMM

SINGAPORE, May 14 (Reuters) - London copper futures edged higher on Monday, bouncing back from the previous session's loss, after top consumer China cut its bank reserve requirement ratio for a third time in six months to boost a slowing economy. 
   
Fundamentals
Three-month copper on the London Metal Exchange gained 0.6 percent to $8,061 per tonne by 0106 GMT after losing more than 1 percent on Friday and falling for a second consecutive week. 

The most-traded August copper contract on the Shanghai Futures Exchange was up 0.2 percent at 57,480 yuan ($9,100) per tonne. 

China's central bank cut the amount of cash that banks are required to hold as reserves on Saturday, freeing an estimated 400 billion yuan ($63.4 billion) for lending after a recent spate of data showed its economy slowed further with the weakest first-quarter growth in nearly three years.  

Some analysts said China should have cut bank reserves after first-quarter data, and that releasing the data over the weekend may reduce the impact with the world's No.2 economy becoming more vulnerable to global weakness. 

China's production of refined copper fell 3.7 percent in April from March, data from the National Bureau of Statistics showed on Friday, indicating the impact of weaker-than-expected domestic demand on smelter operating rates.  

In Greece, political leaders ignored a final plea from the president to form a coalition government to avert a repeat election, pushing Athens closer to bankruptcy and a possible exit from the euro zone.  

Indonesia plans to introduce new quotas to limit mineral exports, and a 20 percent duty on mineral exports by certain companies.  

Market News 
Asian shares eased on Monday as investors saw more reasons to cut risk after talks in Greece to form a new government failed, a German vote pointed to growing opposition to austerity steps, and China took further steps to support growth.
  
U.S. crude prices dropped below $96 per barrel on Monday, pressured by China's slowing economy, the increasing likelihood of a Greek exit from the euro zone, and Saudi's call for higher oil stock levels.  
           
    DATA/EVENTS (GMT) 
    0900  EZ      Industrial production yy   Mar    
  
          China   FDI (ytd)                  May      
         
  Base metals prices at 0106 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8061.00     48.00     +0.60      6.07
  SHFE CU FUT AUG2    57480       140     +0.24      3.83
  HG COPPER JUL2     366.20      1.40     +0.38      6.58
  LME Alum          2052.00      7.00     +0.34      1.58
  SHFE AL FUT AUG2    16110        45     +0.28      1.67
  LME Zinc          1950.00      2.00     +0.10      5.69
  SHFE ZN FUT AUG2    15195        80     +0.53      2.70
  LME Nickel       17300.00    105.00     +0.61     -7.54
  LME Lead          2085.00     13.00     +0.63      2.46
  SHFE PB FUT      15700.00    100.00     +0.64      2.72
  LME Tin          20450.00    -25.00     -0.12      6.51
  LME/Shanghai arb^    1873
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3106 Chinese yuan)