SHANGHAI, Nov. 26 (SMM) – Three-month copper on the London Metal Exchange moved sideways on Monday and closed the day at USD 7,100/mt. Chinalco Mining Corporation International has pulled out of bidding for Glencore Xstrata’s USD 5.9 billion Las Bambas copper mine in Peru, sources familiar with the matter said.  

Remarks by euro zone officials weighed the euro down on Monday. Benoit Coeure, member of the Executive Board of the European Central Bank (ECB), Christian Noyer, member of the ECB Governing Council, and Ardo Hansso, also member of the ECB Governing Council, expressed the same opinions: 1. The euro zone’s Q3 GDP confirmed recovery of the region’s economy. 2. The euro zone is experiencing low inflation, not deflation. 3. The ECB has many monetary policy tools available to use and is ready for further interest rate cuts should inflation approaches further to zero. The cut in interest rate may be smaller than 25 basis points, though. Their speech in favor of easing monetary policy sent the euro down below 1.35.    

US economic figures came in mixed. Markit’s US flash service PMI for November rallied to 57.1 from a reading below 50 in October. Pending sales index of existing home, however, dipped 0.6% MoM in October and marks a fifth straight month of decline, a result of rising mortgage rates. 

Iran and six world powers struck a deal on Sunday to curb Iranian nuclear activities in exchange for sanctions relief and an easing of international sanctions. Iran will suspend enriching uranium to a concentration level of over 5% and "neutralise" its stockpile of uranium enriched to a fissile concentration of 20%. In return, Iran will not face new sanctions in nuclear-related sectors for the next six months and receive about USD 6-7 billion in sanctions relief, according to the deal. Markets are now worried that this will push crude oil supply in Iran up and put downward pressure on crude oil prices. January crude oil on the NYMEX fell to USD 93.57/barrel. Brent Crude futures contract also slid, weighing on commodity prices.

Stock markets on both sides of the Atlantic rose, with NASDAQ jumping above 4,000 points. Base meals on the LME moved at low levels. 

Sluggish trading activity before the Thanksgiving Day will keep LME copper in check within USD 7,060-7,130/mt during Tuesday’s Asian trading hours. The Shanghai Composite Index will consolidate. SHFE 1402 copper contract will fluctuate between RMB 50,600-51,200/mt. In spot markets, eagerness to sell will cause premium over SHFE 1312 copper contract to narrow to RMB 50-150/mt.