Copper Firmer, Shrugs off China PMI Data-Shanghai Metals Market

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Copper Firmer, Shrugs off China PMI Data

Industry News 11:14:47AM Jun 01, 2012 Source:SMM

SHANGHAI, May 31 (Reuters) - London copper rose on Friday, supported by short covering after prices hit the lowest level of the year in the prior session and as investors had priced in disappointing Chinese manufacturing data in the world's biggest consumer of the metal.  

Gains were likely to be limited, however, due to concerns over the European debt crisis, which has escalated in recent weeks on the prospect that Greece could exit the euro zone and on worries over Spain's shaky finances.  
     
Fundamentals  
Three-month copper on the London Metal Exchange lifted 0.6 percent to $7,466.75 a tonne by 0146 GMT, after sinking to its lowest level price of $7,403 in 2012 in the prior session.  

The most-active September copper contract on the Shanghai Futures Exchange lifted 20 yuan to 54,550 yuan ($8,600) a tonne after hitting a fresh 2012 low of 54,210 yuan earlier in the session. It fell 1.4 percent on Thursday. 

"The markets had lowered its expectations of China's economic performance in May over the past few sessions and had priced in that pessimism along with fears over the euro zone. Short-coverers and some fresh longs have started to come in, but sentiment is still cautious," said CIFCO analyst Zhou Jie. 

China's official purchasing managers' index (PMI) fell to 50.4 in May, the weakest reading this year and down from April's 13-month high in the latest sign that output in the world's second-biggest economy is cooling.  

The European Central Bank stepped up pressure on Thursday for a joint guarantee for bank deposits across the euro zone, saying Europe needed new tools to fight bank runs as the bloc's debt crisis drives investors to flee risk.  

Private payroll growth accelerated only slightly in May and claims for jobless benefits rose last week, suggesting the U.S. labor market recovery was stalling after a strong performance early in the year.  

Head of the International Monetary Fund Christine Lagarde denied on Thursday a media report that the Fund was considering contingency plans for a Spanish bailout. The report had caused Wall Street stocks to sharply cut losses.
 
The Federal Reserve could resort to more quantitative easing if the U.S. economy deteriorates, but this situation is unlikely as it is on track for a moderate recovery, an official of the U.S. central bank said on Thursday.  
                      
Market News 
The euro hit a two-year low on Friday and was seen at risk of falling further in coming weeks, dogged by worries that Spain may need external aid to shore up its struggling banking sector and fix its public finances.  
     
    DATA/EVENTS (GMT) 
0230  China    HSBC Mfg PMI Final      May    
0500  India    HSBC Markit Mfg PMI     May     
0743  Italy    Markit/ADACI Mfg PMI    May        
  
0753  Germany  Markit/BME Mfg PMI      May    
0758  EZ       Markit Mfg PMI          May         
  
1230  U.S.     Non-farm payrolls       May    
1400  U.S.     ISM Manufacturing       May  
1400  U.S.     Construction spending   April 
 
                                                              
  Base metals prices at 0146 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7466.75     41.75     +0.56     -1.75
  SHFE CU FUT SEP2    54550        20     +0.04     -1.94
  LME Alum          2002.50      7.50     +0.38     -0.87
  SHFE AL FUT SEP2    15955       -10     -0.06      0.73
  HG COPPER JUL2     336.85      0.25     +0.09     -1.96
  LME Zinc          1884.25     13.25     +0.71      2.13
  SHFE ZN FUT SEP2    14820        25     +0.17      0.17
  LME Nickel       16375.00    145.00     +0.89    -12.48
  LME Lead          1925.00      4.00     +0.21     -5.41
  SHFE PB FUT         15085        40     +0.27     -1.34
  LME Tin          19600.00      0.00     +0.00      2.08
  LME/Shanghai arb     873
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
                                                              
  
($1 = 6.3690 Chinese yuan) 
 

Key Words:  London copper Friday 

Price

more
#1 Lead
May.24
16300.0
100.0
(0.62%)
#1 Lead - Guangdong
May.24
16275.0
100.0
(0.62%)
#1 Lead - Henan
May.24
16275.0
100.0
(0.62%)
#1 Lead -Tianjin
May.24
16275.0
100.0
(0.62%)
#2 Lead
May.24
16300.0
100.0
(0.62%)

Copper Firmer, Shrugs off China PMI Data

Industry News 11:14:47AM Jun 01, 2012 Source:SMM

SHANGHAI, May 31 (Reuters) - London copper rose on Friday, supported by short covering after prices hit the lowest level of the year in the prior session and as investors had priced in disappointing Chinese manufacturing data in the world's biggest consumer of the metal.  

Gains were likely to be limited, however, due to concerns over the European debt crisis, which has escalated in recent weeks on the prospect that Greece could exit the euro zone and on worries over Spain's shaky finances.  
     
Fundamentals  
Three-month copper on the London Metal Exchange lifted 0.6 percent to $7,466.75 a tonne by 0146 GMT, after sinking to its lowest level price of $7,403 in 2012 in the prior session.  

The most-active September copper contract on the Shanghai Futures Exchange lifted 20 yuan to 54,550 yuan ($8,600) a tonne after hitting a fresh 2012 low of 54,210 yuan earlier in the session. It fell 1.4 percent on Thursday. 

"The markets had lowered its expectations of China's economic performance in May over the past few sessions and had priced in that pessimism along with fears over the euro zone. Short-coverers and some fresh longs have started to come in, but sentiment is still cautious," said CIFCO analyst Zhou Jie. 

China's official purchasing managers' index (PMI) fell to 50.4 in May, the weakest reading this year and down from April's 13-month high in the latest sign that output in the world's second-biggest economy is cooling.  

The European Central Bank stepped up pressure on Thursday for a joint guarantee for bank deposits across the euro zone, saying Europe needed new tools to fight bank runs as the bloc's debt crisis drives investors to flee risk.  

Private payroll growth accelerated only slightly in May and claims for jobless benefits rose last week, suggesting the U.S. labor market recovery was stalling after a strong performance early in the year.  

Head of the International Monetary Fund Christine Lagarde denied on Thursday a media report that the Fund was considering contingency plans for a Spanish bailout. The report had caused Wall Street stocks to sharply cut losses.
 
The Federal Reserve could resort to more quantitative easing if the U.S. economy deteriorates, but this situation is unlikely as it is on track for a moderate recovery, an official of the U.S. central bank said on Thursday.  
                      
Market News 
The euro hit a two-year low on Friday and was seen at risk of falling further in coming weeks, dogged by worries that Spain may need external aid to shore up its struggling banking sector and fix its public finances.  
     
    DATA/EVENTS (GMT) 
0230  China    HSBC Mfg PMI Final      May    
0500  India    HSBC Markit Mfg PMI     May     
0743  Italy    Markit/ADACI Mfg PMI    May        
  
0753  Germany  Markit/BME Mfg PMI      May    
0758  EZ       Markit Mfg PMI          May         
  
1230  U.S.     Non-farm payrolls       May    
1400  U.S.     ISM Manufacturing       May  
1400  U.S.     Construction spending   April 
 
                                                              
  Base metals prices at 0146 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7466.75     41.75     +0.56     -1.75
  SHFE CU FUT SEP2    54550        20     +0.04     -1.94
  LME Alum          2002.50      7.50     +0.38     -0.87
  SHFE AL FUT SEP2    15955       -10     -0.06      0.73
  HG COPPER JUL2     336.85      0.25     +0.09     -1.96
  LME Zinc          1884.25     13.25     +0.71      2.13
  SHFE ZN FUT SEP2    14820        25     +0.17      0.17
  LME Nickel       16375.00    145.00     +0.89    -12.48
  LME Lead          1925.00      4.00     +0.21     -5.41
  SHFE PB FUT         15085        40     +0.27     -1.34
  LME Tin          19600.00      0.00     +0.00      2.08
  LME/Shanghai arb     873
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
                                                              
  
($1 = 6.3690 Chinese yuan) 
 

Key Words:  London copper Friday