Copper Flat on Caution Over Industrial Demand-Shanghai Metals Market

Hot Keywords

  • Inventory data
  • Zinc
  • Futures movement
  • MMi Iron Ore Port Index
  • Nickel
  • Copper scrap
  • Copper
  • Aluminium
  • Stainless steel
  • Macroeconomics
  • Evening comments
  • Tin
  • Market commentary
  • Production data
  • inventory

Copper Flat on Caution Over Industrial Demand

Industry News 09:49:07AM Jul 06, 2012 Source:SMM

SHANGHAI, July 6 (Reuters) - Copper was steady on Friday as moves by China, the euro zone and Britain to loosen monetary policy a day earlier failed to inspire industrial metals, instead being seen as a sign of governments' growing level of alarm about the world economy.
                                           
Fundamentals
Three-month copper on the London Metal Exchange edged up 0.3 percent to $7,714.75 per tonne by 0105 GMT, on track to post a second consecutive week of gains this week.

The most-active October copper contract on the Shanghai Futures Exchange edged up 0.1 percent to 56,030 yuan ($8,800) per tonne, on track to post a 1.9 percent rise on the week.

While the market expected ECB's rate cut to a record low of 0.75 percent and BOE's move to restart printing presses and to buy 50 billion pounds ($78 billion) worth of government debts, they were surprised by Beijing's move to lower lending rates by 31 basis points to 6 percent.
 
This was especially because Beijing's latest move followed an interest rate cut just a month ago that also came out of the blue. The market's muted reaction points to worries that officials may know a raft of Chinese data due next week, including second-quarter gross domestic product, will be poor.
 
Investors will also be scouring the U.S. nonfarm payroll data later in the session for more trading cues, although data on Thursday showed the country's private employers stepped up hiring in June and that the number of Americans filing new claims for jobless benefits last week fell by the most in two months, hopeful signs for the struggling labor market.
 
Ireland returned to short-term debt markets on Thursday for the first time since before its EU/IMF bailout in November 2010, paying less for three-month paper than Spain which has avoided going to international lenders for a full sovereign rescue. 
    
Market News
Asian shares paused on Friday, pressured by falls overnight in global shares as sentiment remained cautious despite new stimulus steps taken by three major central banks, with focus now pinned to the U.S. jobs data due later in the day.

The euro struggled at five-week lows on the greenback and life-time troughs against commodity currencies like the Australian dollar on Friday as markets were underwhelmed by the European Central Bank's latest attempt to bolster the region's economy.

DATA/EVENTS (GMT)
1000  Germany   Industrial output mm     May 2012    DEIP=ECI 
1230  U.S.      Non-farm payrolls        June          ECONUSA 
                                                      
  Base metals prices at 0105 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7714.75     19.75     +0.26      1.51
  SHFE CU FUT OCT2    56030        50     +0.09      0.72
  LME Alum          1945.00      1.00     +0.05     -3.71
  SHFE AL FUT OCT2    15685        05     +0.03     -0.98
  HG COPPER SEP2     350.25      0.95     +0.27      1.94
  LME Zinc          1870.00     16.00     +0.86      1.36
  SHFE ZN FUT OCT2    14805       -45     -0.30      0.07
  LME Nickel       16775.00     75.00     +0.45    -10.34
  LME Lead          1883.25     -3.75     -0.20     -7.46
  SHFE PB FUT         14950       -45     -0.30     -2.22
  LME Tin          18875.00      0.00     +0.00     -1.69
  LME/Shanghai arb    1340
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
                                                              
 ($1 = 6.3559 Chinese yuan)

 

Copper Flat on Caution Over Industrial Demand

Industry News 09:49:07AM Jul 06, 2012 Source:SMM

SHANGHAI, July 6 (Reuters) - Copper was steady on Friday as moves by China, the euro zone and Britain to loosen monetary policy a day earlier failed to inspire industrial metals, instead being seen as a sign of governments' growing level of alarm about the world economy.
                                           
Fundamentals
Three-month copper on the London Metal Exchange edged up 0.3 percent to $7,714.75 per tonne by 0105 GMT, on track to post a second consecutive week of gains this week.

The most-active October copper contract on the Shanghai Futures Exchange edged up 0.1 percent to 56,030 yuan ($8,800) per tonne, on track to post a 1.9 percent rise on the week.

While the market expected ECB's rate cut to a record low of 0.75 percent and BOE's move to restart printing presses and to buy 50 billion pounds ($78 billion) worth of government debts, they were surprised by Beijing's move to lower lending rates by 31 basis points to 6 percent.
 
This was especially because Beijing's latest move followed an interest rate cut just a month ago that also came out of the blue. The market's muted reaction points to worries that officials may know a raft of Chinese data due next week, including second-quarter gross domestic product, will be poor.
 
Investors will also be scouring the U.S. nonfarm payroll data later in the session for more trading cues, although data on Thursday showed the country's private employers stepped up hiring in June and that the number of Americans filing new claims for jobless benefits last week fell by the most in two months, hopeful signs for the struggling labor market.
 
Ireland returned to short-term debt markets on Thursday for the first time since before its EU/IMF bailout in November 2010, paying less for three-month paper than Spain which has avoided going to international lenders for a full sovereign rescue. 
    
Market News
Asian shares paused on Friday, pressured by falls overnight in global shares as sentiment remained cautious despite new stimulus steps taken by three major central banks, with focus now pinned to the U.S. jobs data due later in the day.

The euro struggled at five-week lows on the greenback and life-time troughs against commodity currencies like the Australian dollar on Friday as markets were underwhelmed by the European Central Bank's latest attempt to bolster the region's economy.

DATA/EVENTS (GMT)
1000  Germany   Industrial output mm     May 2012    DEIP=ECI 
1230  U.S.      Non-farm payrolls        June          ECONUSA 
                                                      
  Base metals prices at 0105 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7714.75     19.75     +0.26      1.51
  SHFE CU FUT OCT2    56030        50     +0.09      0.72
  LME Alum          1945.00      1.00     +0.05     -3.71
  SHFE AL FUT OCT2    15685        05     +0.03     -0.98
  HG COPPER SEP2     350.25      0.95     +0.27      1.94
  LME Zinc          1870.00     16.00     +0.86      1.36
  SHFE ZN FUT OCT2    14805       -45     -0.30      0.07
  LME Nickel       16775.00     75.00     +0.45    -10.34
  LME Lead          1883.25     -3.75     -0.20     -7.46
  SHFE PB FUT         14950       -45     -0.30     -2.22
  LME Tin          18875.00      0.00     +0.00     -1.69
  LME/Shanghai arb    1340
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
                                                              
 ($1 = 6.3559 Chinese yuan)