Copper Heads for 4th Week of Falls on Growth Concerns-Shanghai Metals Market

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Copper Heads for 4th Week of Falls on Growth Concerns

Industry News 10:23:55AM May 25, 2012 Source:SMM

SINGAPORE, May 25 (Reuters) - London copper was steady on Friday but remained on course for its fourth straight week of declines as worries mount about a possible Greek exit from the euro zone and on global economic growth. 
       
Fundamentals  
Three-month copper on the London Metal Exchange was little changed at $7,613.25 a tonne by 0101 GMT, on track for a 0.5 percent decline from the week before, its fourth consecutive week in the red. 

The most-traded September copper contract on the Shanghai Futures Exchange inched down 0.1 percent to 55,090 yuan ($8,700) a tonne. 

Service and manufacturing sectors in the euro zone contracted for the ninth month in a row in May, while U.S. manufacturing activity slowed and China's factories faltered, deepening worries about the global economy.  

At least half of euro zone governments as well as banks and large companies are making contingency plans in case Greece decides to leave the single currency area, even though the preferred option is still for Athens to keep the euro.
  
Further action by the Federal Reserve to stimulate the U.S. recovery is not warranted for now because current growth is making a dent in "slack" in the economy, including in the labour market, the influential head of the New York Fed said on Thursday.
 
Copper prices are likely to recover from recent falls as Chinese demand for the metal is expected to continue to rise and euro zone copper demand is no longer a decisive factor, said Aurubis, Europe's biggest copper producer.
  
Trafigura and U.S. aluminum producer Ormet Corp have formed a joint venture to buy bauxite, alumina and aluminum projects, they said on Thursday, as the Swiss trading house builds a physical presence in the aluminum market.  

LME aluminium edged up 0.2 percent to $2,019, heading for a 2.5-percent weekly fall, its biggest in two months. 

Chilean state copper giant Codelco's CEO Diego Hernandez abruptly resigned on Thursday and will be replaced by CFO Thomas Keller, just as the world's No. 1 copper producer is striving to end a bitter contract dispute with global miner Anglo American. 
  
Market News  
U.S. stocks ended slightly higher in a third session marked by late-day swings, but the Nasdaq fell after NetApp gave a weak revenue forecast, casting doubt on the outlook for tech spending.  
The euro hovered near two-year lows against the dollar on Friday, weighed down by weak German manufacturing data which showed that no European state is immune from the ongoing debt crisis which saw the currency drop nearly two percent this week.
  
DATA/EVENTS 
 0645 France  Consumer confidence         May
 1355 US      ThomsonReuters/U.Mich final consumer sentiment May
 1930 US      CFTC commitment of traders  Weekly  
        
   PRICES   
   
 Base metals prices at 0101 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7613.25      3.25     +0.04      0.17
  SHFE CU FUT SEP2    55090       -60     -0.11     -0.49
  HG COPPER JUL2     343.85      0.90     +0.29      0.07
  LME Alum          2019.00      4.00     +0.20     -0.05
  SHFE AL FUT SEP2    15975        10     +0.06      0.82
  LME Zinc          1886.00      0.00     +0.00      2.22
  SHFE ZN FUT SEP2    14750        00     +0.00     -0.30
  LME Nickel       16974.00   -101.00     -0.59     -9.28
  LME Lead          1948.25     -6.75     -0.35     -4.26
  SHFE PB FUT          0.00 -15130.00   -100.00   -100.00
  LME Tin          19970.00      0.00     +0.00      4.01
  LME/Shanghai arb^    1192
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3447 Chinese yuan) 
 

 

 

Key Words:  London copper Friday  

Price

more
1# Zinc
Oct.22
18930.0
-40.0
(-0.21%)
0# Zinc
Oct.22
19000.0
-40.0
(-0.21%)
T/C for domestic zinc concentrate
Oct.01
6325.0
0.0
(0.00%)
T/C for imported zinc concentrate
Oct.01
280.0
0.0
(0.00%)
Zinc Alloy (Zamak3/ZX01)
Oct.22
19900.0
-40.0
(-0.20%)

Copper Heads for 4th Week of Falls on Growth Concerns

Industry News 10:23:55AM May 25, 2012 Source:SMM

SINGAPORE, May 25 (Reuters) - London copper was steady on Friday but remained on course for its fourth straight week of declines as worries mount about a possible Greek exit from the euro zone and on global economic growth. 
       
Fundamentals  
Three-month copper on the London Metal Exchange was little changed at $7,613.25 a tonne by 0101 GMT, on track for a 0.5 percent decline from the week before, its fourth consecutive week in the red. 

The most-traded September copper contract on the Shanghai Futures Exchange inched down 0.1 percent to 55,090 yuan ($8,700) a tonne. 

Service and manufacturing sectors in the euro zone contracted for the ninth month in a row in May, while U.S. manufacturing activity slowed and China's factories faltered, deepening worries about the global economy.  

At least half of euro zone governments as well as banks and large companies are making contingency plans in case Greece decides to leave the single currency area, even though the preferred option is still for Athens to keep the euro.
  
Further action by the Federal Reserve to stimulate the U.S. recovery is not warranted for now because current growth is making a dent in "slack" in the economy, including in the labour market, the influential head of the New York Fed said on Thursday.
 
Copper prices are likely to recover from recent falls as Chinese demand for the metal is expected to continue to rise and euro zone copper demand is no longer a decisive factor, said Aurubis, Europe's biggest copper producer.
  
Trafigura and U.S. aluminum producer Ormet Corp have formed a joint venture to buy bauxite, alumina and aluminum projects, they said on Thursday, as the Swiss trading house builds a physical presence in the aluminum market.  

LME aluminium edged up 0.2 percent to $2,019, heading for a 2.5-percent weekly fall, its biggest in two months. 

Chilean state copper giant Codelco's CEO Diego Hernandez abruptly resigned on Thursday and will be replaced by CFO Thomas Keller, just as the world's No. 1 copper producer is striving to end a bitter contract dispute with global miner Anglo American. 
  
Market News  
U.S. stocks ended slightly higher in a third session marked by late-day swings, but the Nasdaq fell after NetApp gave a weak revenue forecast, casting doubt on the outlook for tech spending.  
The euro hovered near two-year lows against the dollar on Friday, weighed down by weak German manufacturing data which showed that no European state is immune from the ongoing debt crisis which saw the currency drop nearly two percent this week.
  
DATA/EVENTS 
 0645 France  Consumer confidence         May
 1355 US      ThomsonReuters/U.Mich final consumer sentiment May
 1930 US      CFTC commitment of traders  Weekly  
        
   PRICES   
   
 Base metals prices at 0101 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7613.25      3.25     +0.04      0.17
  SHFE CU FUT SEP2    55090       -60     -0.11     -0.49
  HG COPPER JUL2     343.85      0.90     +0.29      0.07
  LME Alum          2019.00      4.00     +0.20     -0.05
  SHFE AL FUT SEP2    15975        10     +0.06      0.82
  LME Zinc          1886.00      0.00     +0.00      2.22
  SHFE ZN FUT SEP2    14750        00     +0.00     -0.30
  LME Nickel       16974.00   -101.00     -0.59     -9.28
  LME Lead          1948.25     -6.75     -0.35     -4.26
  SHFE PB FUT          0.00 -15130.00   -100.00   -100.00
  LME Tin          19970.00      0.00     +0.00      4.01
  LME/Shanghai arb^    1192
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3447 Chinese yuan) 
 

 

 

Key Words:  London copper Friday