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METALS-Copper Closes Below $8,000/T, Data in Focus

India Miner Hindustan Copper Files Prospectus to Sell 183.9 Million Shares

NEW YORK/LONDON, Sept 27 (Reuters) - Copper ended easier on Monday, as prices took a breather from September's rally, but analysts expected upside momentum to return and looked to upcoming data releases to either fuel the break or reversal from the $8,000 (per tonne) ceiling.
&quot;I think it is just consolidating a little bit here,&quot; said Justin Lennon, base metals analyst with Mitsui Bussan Commodities (U.S.A.) Inc.
&quot;It's made a really strong base below here and it has moved up nicely last week ... it's just a pause,&quot; he said. 
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Copper for December delivery HGZ0 dipped 2.10 cents to end at $3.5970 per lb on the COMEX metals division of the New York Mercantile Exchange, after dealing from $3.5880 to $3.6440, which marked a new high for the fourth position futures contract dating back to mid-April. 
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On the London Metal Exchange (LME), benchmark copper for three-months delivery CMCU3 ended down $35 at $7,910 a tonne, near its session peak at $7,986, which was just shy of last week's five-month high of $7,990. 
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Since the start of the month, prices of the industrial metal have rallied more than 7 percent, driven by expectations of further downward pressure on the U.S. dollar, falling inventory levels and an improved fourth-quarter demand outlook. [USD/] 
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&quot;The commodities complex as a whole has benefited from this recent bout of dollar weakness. Clearly copper is getting close to that $8,000 level where we got to in April,&quot; said analyst Dan Major at RBS. 
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Market expectations of supply tightness have narrowed the contango between the cash and the three-month copper contract to near zero from about $28 a tonne in early August. MCU0-3&nbsp;
&quot;There has been some good inventory outflow out of the COMEX over the last few weeks,&quot; Mitsui's Lennon said. &quot;Demand is forcing people to secure some spot cathode in the market.&quot;
LME copper inventories fell another 2,100 tonnes on Monday to 378,125, their lowest level since last November, down nearly one-third from a six-year high hit in February.
COMEX copper stocks saw a hefty 1,111 short tons leave warehouses on Friday, leaving levels at their lowest since late November. 
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&quot;We are still at the top of that trading range. I think we need to get some decent data surprises to the upside for us to break through the $8,000 mark,&quot; Major added. 
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The market waiting for surveys of purchasing managers in the manufacturing sector next week. 
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DISCOUNT 
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The discount in Shanghai copper to LME copper shot up to 1,546 yuan compared with 544 yuan last Tuesday, pushing Asian buyers away from the London market. 
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&quot;There may have been selling overnight because of a closed arbitrage but the overall theme is still the same in that you've got relatively healthy demand from countries like China (and) supply for copper is growing at a slower pace than demand,&quot; said Merrill Lynch analyst Michael Widmer. 
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He added that while lackluster economic growth in developed countries was a concern, the chances of a double-dip global recession have lessened while developing nations, which are key to metals demand, are faring well. 
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Among other industrial metals, aluminum CMAL3 ended down $24 at $2,293 a tonne, lead CMPB3 shed $27 to $2,269, and zinc CMZN3 sank $41 to $2,207. 
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Tin CMSN3 rose $50 to finish at $23,650 and nickel CMNI3 gained $175 to $23,050. 
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Metal Prices at 1835 GMT 
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COMEX copper in cents/lb, LME prices in $/T and SHFE prices in 
yuan/T 
&nbsp;Metal&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Last&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change&nbsp; Pct Move&nbsp;&nbsp; End 2009&nbsp;&nbsp; Ytd Pct 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; move 
&nbsp;COMEX Cu&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 359.80&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -2.00&nbsp;&nbsp;&nbsp;&nbsp; -0.55&nbsp;&nbsp;&nbsp;&nbsp; 334.65&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.52 
&nbsp;LME Alum&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2277.00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -40.00&nbsp;&nbsp;&nbsp;&nbsp; -1.73&nbsp;&nbsp;&nbsp; 2230.00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.11 
&nbsp;LME Cu&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7900.00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -45.00&nbsp;&nbsp;&nbsp;&nbsp; -0.57&nbsp;&nbsp;&nbsp; 7375.00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.12 
&nbsp;LME Lead&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2260.00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -36.00&nbsp;&nbsp;&nbsp;&nbsp; -1.57&nbsp;&nbsp;&nbsp; 2432.00&nbsp;&nbsp;&nbsp;&nbsp; -7.07 
&nbsp;LME Nickel&nbsp;&nbsp; 23050.00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 175.00&nbsp;&nbsp;&nbsp;&nbsp; +0.77&nbsp;&nbsp; 18525.00&nbsp;&nbsp;&nbsp;&nbsp; 24.43 
&nbsp;LME Tin&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23550.00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -50.00&nbsp;&nbsp;&nbsp;&nbsp; -0.21&nbsp;&nbsp; 16950.00&nbsp;&nbsp;&nbsp;&nbsp; 38.94 
&nbsp;LME Zinc&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2200.00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -48.00&nbsp;&nbsp;&nbsp;&nbsp; -2.14&nbsp;&nbsp;&nbsp; 2560.00&nbsp;&nbsp;&nbsp; -14.06 
&nbsp;SHFE Alu&nbsp;&nbsp;&nbsp;&nbsp; 15930.00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 205.00&nbsp;&nbsp;&nbsp;&nbsp; +1.30&nbsp;&nbsp; 17160.00&nbsp;&nbsp;&nbsp;&nbsp; -7.17 
&nbsp;SHFE Cu*&nbsp;&nbsp;&nbsp;&nbsp; 60600.00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 770.00&nbsp;&nbsp;&nbsp;&nbsp; +1.29&nbsp;&nbsp; 59900.00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.17 
&nbsp;SHFE Zin&nbsp;&nbsp;&nbsp;&nbsp; 17950.00&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 145.00&nbsp;&nbsp;&nbsp;&nbsp; +0.81&nbsp;&nbsp; 21195.00&nbsp;&nbsp;&nbsp; -15.31
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