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Zinc rises, Copper in London Gains for Third Week on Stocks Advance, European Outlook
By Bloomberg News - Aug 6, 2010 1:40 AM PT
Copper gained, heading for a third weekly increase, as a rise in equities and speculation that European economies are recovering boosted the demand outlook.
Three-month copper on the London Metal Exchange advanced 0.5 percent to $7,438 a metric ton at 4:05 p.m. in Shanghai, up 2.1 percent this week. The metal touched $7,527 on Aug. 4, the highest level since April 27.
“We’ve been witnessing a close correlation between equities and metals recently,” Cao Yanghui, an analyst at Nanhua Futures Co., said from Hangzhou. Copper in Shanghai advanced after local stocks climbed in the afternoon, boosting the metal in London, he said.
China’s benchmark stock index closed 1.4 percent higher. Most Asian stocks rose, driving the MSCI Asia Pacific Index to a fifth weekly increase, as gains by real-estate companies overshadowed declines among exporters following an increase in U.S. jobless claims. Economists expect reports today to show German industrial production grew for a fourth month and British manufacturing expanded.
U.S. jobless claims unexpectedly rose to a three-month high in the week ended July 31, Labor Department figures showed yesterday.
Demand Worries
“The global macroeconomic picture hasn’t been great, so it’s been speculative money that caused the recent rally and the high prices have slowed physical purchases in China,” Ji Xianglong, an analyst at Xinhua Futures Co., said from Zhejiang.
Backwardation, where near-term prices are higher than longer-dated contracts, has narrowed or disappeared in the past two weeks in the Chinese market, suggesting ample supplies or lower demand in the short-term.
Immediate-delivery copper in Changjiang, Shanghai’s biggest cash market, traded about 175 yuan more than the most-active futures contract yesterday, compared with this year’s high of 1,410 yuan on July 1. November-delivery futures on the Shanghai Futures Exchange closed 0.8 percent higher at 57,830 yuan ($8,544) a ton.
“Fundamentally, there’s little to keep copper prices above $7,500 in London and 60,000 yuan in Shanghai,” said Ji.
Codelco, the largest copper producer, said demand in China will slow “a little” in this half because of government measures to tighten lending and curb inflation.
“The Chinese are worried about controlling inflation, and they want to have a GDP growth target at 9 percent, not 11 percent,” said Chief Executive Officer Diego Hernandez in an interview in Shanghai today.
Still, Codelco is optimistic about the copper market because new supplies will be crimped as mining companies are reluctant to take on debt for expansion plans, Hernandez said.
Aluminum in London increased 0.3 percent to $2,216 a ton, zinc rose 1.2 percent to $2,123 a ton, and lead advanced 0.8 percent to $2,203 a ton. Nickel gained 1 percent to $22,210 a ton, while tin climbed 0.4 percent at $20,550 a ton.
http://www.bloomberg.com/news/2010-08-06/copper-drops-for-second-day-on-outlook-concerns-pares-third-weekly-gain.html
Lead falls, Copper Drops in New York on Concern About Outlook for Chinese Real Estate
By Anna Stablum - Aug 5, 2010 5:17 AM PT
Copper fell in New York and London on concern about the outlook for the real-estate market in China as the government assesses the risk of a possible property-price slump.
China’s banking regulator told lenders to include worst- case scenarios of prices dropping 50 percent to 60 percent in cities where they have risen excessively, a person with knowledge of the matter said. The country is the world’s biggest copper user. Construction accounts for a quarter of demand, according to the Copper Development Association.
Industrial metals were “weaker overnight on worries over the Chinese bank stress tests,” David Thurtell, a Citigroup Inc. analyst in London, said by telephone.
Futures for September delivery fell 2.65 cents, or 0.8 percent, to $3.378 a pound at 8:02 a.m. on the Comex in New York. The contract yesterday reached the highest intraday price since April 29. Copper for delivery in three months declined 0.7 percent to $7,455 a metric ton on the London Metal Exchange.
Prices also slid as orders to draw copper from stockpiles declined for a second day. “It’s the seasonal weak spot for consumption,” Thurtell said.
Chinese regulators have tightened real-estate lending and cracked down on speculation since mid-April, after residential real-estate prices soared 68 percent in the first quarter from a year earlier, according to estimates from Knight Frank LLP.
Demand Growth
Measures to prevent overheating in China are a “good thing to happen,” Rodrigo Toro, corporate senior sales vice president at Codelco, told reporters at the World Expo in Shanghai. They will cap China’s annual demand growth at 8 percent and may keep it at that rate in coming years, he said. Santiago-based Codelco is the world’s largest copper producer.
Canceled warrants, as the orders are known, tracked by the LME dropped 4.8 percent to 28,500 tons, daily exchange figures showed. Warrants are down 13 percent this month after falling 5.5 percent in July.
Copper stockpiles shrank for a second day, slipping 0.2 percent to 413,075 tons. They declined 8.3 percent in July, the most since June 2009, and are down 18 percent this year, on course for the first annual drop since 2004.
Aluminum for three-month delivery on the LME dropped 0.3 percent to $2,222.50 a ton. The contango, cash metal’s discount to the three-month contract, widened to $10.50 a ton yesterday from the prior session’s $10.25, according to LME data. It reached $10 on Aug. 2, the narrowest level since March 23, 2007.
Shift to Backwardation?
“It’s looking increasingly likely that the market could move into backwardation,” Gayle Berry, an analyst at Barclays Capital, said by e-mail yesterday, referring to a premium for cash metal to the three-month contract. “Limited availability of spot metal due to the strong recovery in demand, tight scrap supply and a lot of LME metal being tied up in financing deals” lie behind the shift, she said.
An estimated 70 percent of LME aluminum inventories are tied up in financing transactions, according to Mitsui Bussan Commodities, the industrial-metals trading arm of Mitsui & Co. Stockpiles of the lightweight metal in LME warehouses have dropped 4.9 percent this year to 4.40 million tons.
“I don’t think that financing deals will be broken en masse,” Berry said. “That would require a much tighter spread, especially since further out on the curve there is still a decent contango.”
Higher prices for longer-dated contracts give more scope to profit by buying physical metal and selling futures, provided financing, insurance and storage costs are less than the price difference between corresponding futures.
Tin, Nickel
Tin rose 1.3 percent to $20,560 a ton. The metal, mainly used in electrical soldering, climbed as high as $20,698, the highest intraday price since Aug. 27, 2008. LME inventories dropped to 14,715 tons, the lowest level since June 1, 2009.
A single party holds between 50 percent and 79 percent of stockpiled LME metal, according to exchange data as of Aug. 3. That was up from between 40 percent and 49 percent on July 27.
Lead fell 0.9 percent to $2,222 a ton and zinc slipped 0.1 percent to $2,118 a ton. Nickel gained 0.7 percent to $22,100 a ton after reaching $22,139, the highest since May 24.
http://www.bloomberg.com/news/2010-08-05/copper-declines-in-london-on-concern-about-outlook-for-chinese-real-estate.html
Farallon To Announce Second Quarter Results On August 11, 2010, Conference Call To Be Held On August 12, 2010
August 4, 2010, Vancouver, BC - Farallon Mining will release its second quarter results on Wednesday August 11, 2010. A conference call and webcast will be held by management on Thursday August 12, 2010 at 8:00 AM Pacific Time (11:00 AM Eastern Time) to further discuss the results.
The conference call can be accessed by telephone at the following numbers (647)427-7450 or the toll-free number (888)231-8191. A live webcast will also be available at www.farallonmining.com or at the following webcast location : http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3146000. The replay of the conference call will be on the website after the call is completed.
Farallon operates the G-9 zinc mine on its Campo Morado Property in Guerrero State, Mexico. G-9 is a 1,500 tonnes per day, underground, zinc mine with important by-product credits of copper, gold, and silver, and with operating costs in the lowest 10% of zinc producers worldwide. The Company is targeting to produce at an annualized production rate of 120 million pounds of zinc and 15 million pounds of copper per year.
For further details on Farallon Mining Ltd., please visit the Company's website at www.farallonmining.com or contact Neil MacRae, Investor Relations Manager, at (604) 638-2160 or within North America at 1-877-688-2050.
ON BEHALF OF THE BOARD OF DIRECTORS
J.R.H. (Dick) Whittington
President & CEO
http://www.farallonresources.com/fan/NewsReleases.asp?ReportID=412636&_Type=&_Title=Farallon-To-Announce-Second-Quarter-Results-On-August-11-2010-Conference-Ca...
Zinc up 1%, Copper May Decline in New York on Concern U.S. Economic Rebound Is Cooling
By Anna Stablum - Aug 4, 2010 5:11 AM PDT Wed Aug 04 12:11:19 UTC
Copper may fall for a second day in New York and London on concern that a report will show a further cooling of the economy in the U.S., the world’s second-biggest user of the metal after China.
The Institute for Supply Management’s index of non- manufacturing businesses, which covers about 90 percent of the economy, slid in July, according to economists. U.S. consumer spending, pending home sales and factory orders were all weaker than projected in June, figures showed yesterday. A report due Aug. 6 may show that U.S. nonfarm payrolls declined.
“Recent data out of the U.S. continues to imply an economy that is losing momentum amid tepid job gains,” said Alex Heath, head of industrial-metals trading at RBC Capital Markets in London. “As a result, the pre-payrolls data today will carry greater-than-usual importance.”
Futures for September delivery rose 0.15 cent to $3.36 a pound at 7:59 a.m. on the Comex in New York, erasing a decline of as much as 0.8 percent. Copper for delivery in three months slipped 0.1 percent to $7,418 a metric ton on the London Metal Exchange.
The ISM index declined to 53 from 53.8 in June, according to the median forecast of 76 economists surveyed by Bloomberg News. Readings above 50 signal expansion. The figures are due at 10 a.m. Washington time. The monthly report on U.S. employment may show that non-farm payrolls shrank by 60,000 in July, according to a separate survey.
‘Healthy’ Indicators
“Concerns over the likely trajectory of the global macro economy” have influenced prices in recent sessions, Michael Widmer, an analyst at Bank of America Merrill Lynch, said in a report dated yesterday. Still, other indicators have stayed “quite healthy,” he said, citing a drop in stockpiles that “suggests continued fundamental support.”
Copper will outperform gold in coming years because of Chinese demand and the nascent electric car industry, according to Vancouver-based Ivanhoe Mines Ltd., which is developing the Oyu Tolgoi project in Mongolia with Rio Tinto Group. Rio has described the mine as the world’s largest untapped copper and gold resource.
“We need more copper in the next 20 years than was mined in the last 110 years,” Ivanhoe Chairman Robert Friedland said today at the Diggers and Dealers conference in Kalgoorlie, Western Australia. “Those of us in the business don’t have any idea where this metal is going to come from.”
Gold for immediate delivery has risen 9 percent this year, while LME copper is up 0.6 percent.
Inventories Contract
Copper stockpiles tracked by the LME shrank for a second day this week, slipping 125 tons to 413,950 tons, daily exchange figures showed. They slid 8.3 percent in July, the most since June 2009, and are down 18 percent this year, on course for the first annual drop since 2004.
Canceled warrants, or bookings to draw metal from stockpiles, fell 3.9 percent to 29,925 tons.
Aluminum for three-month delivery on the LME added 0.5 percent to $2,215 a ton. The contango, cash metal’s discount to the three-month contract, narrowed to $9.25 a ton today, the lowest since 2007, from $10.25 in the prior session, according to LME data.
Tin gained 0.3 percent to $19,900 a ton after reaching $20,000, the highest intraday price since Sept. 1, 2008. Lead fell 0.5 percent to $2,209.25 a ton, zinc rose 1 percent to $2,106 a ton and nickel was little changed at $21,652 a ton.
http://www.bloomberg.com/news/2010-08-04/copper-may-decline-in-london-on-concern-u-s-economic-rebound-is-cooling.html
Zinc falls, Copper Drops in New York Following Rally to Highest Price in Three Months
By Anna Stablum - Aug 3, 2010 5:40 AM PDT Tue Aug 03 12:40:27 UTC
Copper fell in New York and London for the first time in five days as some investors sold the metal to lock in gains from a rally to a three-month high.
Prices yesterday climbed to the highest intraday level since April 30 as the Stoxx Europe 600 Index of equities surged to a three-month high, increasing confidence in the global economic recovery. European shares dropped today, and futures indicated that the U.S. Standard & Poor’s 500 Index will slip when trading begins in New York.
“Copper is taking a breather after an impressive rally in the past week as risk sentiment improves,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said in an e-mail today.
Futures for September delivery slid 3.1 cents, or 0.9 percent, to $3.3585 a pound at 8:16 a.m. on the Comex in New York. The contract gained 4 percent last week and yesterday climbed as high as $3.3965. Copper for delivery in three months fell 1.3 percent to $7,410 a metric ton on the London Metal Exchange.
Comex copper’s 14-day relative strength index, a gauge of whether a commodity is overbought or oversold, yesterday rose to 73. Some analysts and investors who study technical charts view an RSI above 70 as a signal that prices may be poised to retreat.
Construction Spending
“We would think that while dips are likely to be bought over the next few days, the recent rally has probably run its course,” Alex Heath, head of industrial-metals trading at RBC Capital Markets in London, said in a report yesterday.
Copper gained yesterday as government figures showed that construction spending unexpectedly increased 0.1 percent in June in the U.S., the world’s second-biggest user of the metal after China. A report today may show an increase in the number of contracts to purchase U.S. previously owned homes.
The index of pending home resales increased 4 percent last month, according to the median forecast in a Bloomberg News survey of 37 economists. The figures are due at 10 a.m. Washington time. Construction accounts for a quarter of copper demand, according to the Copper Development Association.
A separate report scheduled for release at the same time might show that U.S. factory orders decreased 0.5 percent in June, slowing from May’s 1.4 percent drop, according to the survey.
Inventories Expand
Copper stockpiles tracked by the LME rose 0.2 percent to 414,075 tons, daily exchange figures showed. They slid 8.3 percent in July, the most since June 2009, and are down 18 percent this year, on course for the first annual drop since 2004. Aluminum, lead and zinc inventories also increased.
“For all the base metals, apart from tin, we would highlight that a risk to the current strong upward momentum are recent LME inventory trends, which have become less supportive,” Gayle Berry, an analyst at Barclays Capital, said in a report.
Canceled warrants for copper, or bookings to draw metal from stockpiles, rose 0.3 percent to 31,125 tons.
Lead for three-month delivery on the LME rose 0.3 percent to $2,220 a ton. The metal, mostly used to make batteries, pared a climb as high as $2,233, the highest intraday price since April 30.
“The heavy metal often outperforms during the second half of the year, as its peak demand season takes place in the third and fourth quarter as battery producers restock,” RBC’s Heath said.
Aluminum declined 0.5 percent to $2,205.25 a ton. LME inventories rose 0.5 percent to 4.4 million tons after falling for eight days. The contango, cash metal’s discount to the three-month contract, widened to $11.25 a ton after reaching $10 yesterday, the lowest level since March 23, 2007, according to LME data.
Zinc dropped 1.4 percent to $2,091 a ton, nickel fell 1.3 percent to $21,660 a ton and tin slid 0.4 percent to $19,800 a ton.
http://www.bloomberg.com/news/2010-08-03/copper-declines-in-london-following-rally-to-highest-price-in-three-months.html
Zinc gains, Copper Rises to Three-Month High in London, Wiping Out This Year's Slide
By Claudia Carpenter - Aug 2, 2010 12:26 AM PDT Mon Aug 02 07:26:58
Copper futures in London, Shanghai and New York jumped to the highest level in three months as a rally in equities boosted investor confidence that the global economic recovery is gaining momentum.
-- Copper climbed $95.75, or 1.3 percent, to $7,392.25 a metric
ton on the London Metal Exchange at 8:25 a.m. Relative Strength
Index 69.96.
-- Aluminum gained 0.8 percent to $2,192 a ton. RSI 73.32.
-- Zinc rose 0.6 percent to $2,037 a ton. RSI 64.65.
-- Lead added 1.9 percent to $2,116 a ton. RSI 73.09.
-- Nickel gained 2.6 percent to $21,700 a ton. RSI 67.14.
-- Tin jumped 1.5 percent to $19,799 a ton. RSI 72.34.
Other markets: Last % Change % YTD
U.S. Dollar Index 81.432 -0.1 4.6
Crude oil $79.22 0.3 -0.2
Gold $1,183.40 0.2 7.9
MSCI World Index 1,124.83 0.0 -3.7
Economic Events:
Forecast Prior Time
(London)
U.S. ISM Manufacturing 54 56.2 15:00
U.S. Construction Spending -0.5 -0.2% 15:00
http://www.bloomberg.com/news/2010-07-30/copper-falls-in-london-before-report-on-u-s-economic-growth-lme-preview.html
Zinc declines, Copper Falls in London Before Report on U.S. Economic Growth: LME Preview
By Claudia Carpenter - Jul 29, 2010 11:35 PM PDT Fri Jul 30
Copper dropped, paring the first monthly gain since March, as expectations of a slowdown in U.S. economic growth weakened the outlook for metals demand.
-- Copper fell $6, or 0.1 percent, to $7,224.50 a metric
ton on the London Metal Exchange at 7:32 a.m. Relative Strength
Index 65.05.
-- Aluminum gained 0.1 percent to $2,094.50 a ton. RSI 64.1.
-- Zinc fell 0.8 percent to $1,974 a ton. RSI 59.12.
-- Lead declined 0.7 percent to $2,035 a ton. RSI 66.86.
-- Nickel gained 0.2 percent to $20,725 a ton. RSI 59.48.
-- Tin decreased 0.5percent to $19,500 a ton. RSI 69.36.
Other markets: Last % Change % YTD
U.S. Dollar Index 81.601 -0.1 4.8
Crude oil $78.11 -0.3 -1.6
Gold $1,168.95 0.1 6.6
MSCI World Index 1,128.23 0.0 -3.4
Economic Events:
Forecast Prior Time
(London)
Euro-Zone Unemployment 10% 10% 10:00
U.S. Personal Consumption 2.4% 3.0% 13:30
U.S. GDP 2.6% 2.7% 13:30
http://www.bloomberg.com/news/2010-07-30/copper-falls-in-london-before-report-on-u-s-economic-growth-lme-preview.html
Zinc rallies, Comex Copper Gains On Stronger New Home Sales
NEW YORK, Jul 26, 2010 (Dow Jones Commodities News via Comtex) --
By Matt Whittaker
Of DOW JONES NEWSWIRES
Copper futures extended two-month highs Monday after U.S. home sales figures jumped by much more than expected, boosting expectations of demand for the metal in an already tightening market.
The most actively traded copper contract, for September delivery, was recently up 3.85 cents, or 1.2%, at $3.2235 a pound on the Comex division of the New York Mercantile Exchange. The intraday high of $3.2330 was the contract's highest point since May 14.
Prices for the metal--which is heavily used for piping and wiring in residences--ticked higher after data showed new home sales increased 23.6% in June to an annual rate of 330,000, beating economist expectations of a 3.7% gain to 311,000.
"Any bearish tint to the copper market was erased with that," said Bob Haberkorn, senior market strategist with Lind-Waldock in Chicago.
The data come at a time when copper prices are rising against a backdrop of tightening supplies as warehouse inventories continue to drop.
Inventories of copper stored in London Metal Exchange warehouses fell 3,375 metric tons Monday, leaving them at 416,275. They stood at more than 500,000 tons at the beginning of the year.
The weaker U.S. dollar--down as the euro gained modest support following European bank stress test results Friday--was also helping copper. A lower buck generally boosts the dollar-denominated metal by making it less expensive for buyers using other currencies.
Only seven out of 91 banks failed the tests, largely in line with expectations, and market participants were relieved that no new problems emerged.
As an industrial metal widely used in housing, electronics, automobiles and appliances, copper had been pressured worries about the global economy, including about the European debt crisis. Friday's test results helped ease some of those worries.
-By Matt Whittaker, Dow Jones Newswires; 212-416-2139; matt.whittaker@dowjones.com
(END) Dow Jones Newswires
07-26-10 1022ET
http://news.tradingcharts.com/futures/4/6/142942464.html
Zinc slides, Copper Heads for Best Week in Five Months in London on Demand: LME Preview
By Claudia Carpenter - Jul 23, 2010
Copper headed for its best week in five months as the outlook for demand improved following a continued decline in inventories. Futures in Shanghai jumped to an eight-week high.
-- Copper fell $15.25, or 0.2 percent to $6,994.75 a metric ton
on the London Metal Exchange at 7:24 a.m. Relative Strength
Index 61.1.
-- Aluminum dropped 0.4 percent to $2,036.25 a ton. RSI 56.8.
-- Zinc declined 1.2 percent to $1,925.75 a ton. RSI 57.5.
-- Lead lost 0.8 percent to $1,925.50 a ton. RSI 62.
-- Nickel climbed 0.4 percent to $20,325 a ton. RSI 57.5.
-- Tin dropped 1.2 percent to $18,350 a ton. RSI 59.
Other markets: Last % Change % YTD
U.S. Dollar Index 82.654 0.0 6.2
Crude oil $79.07 -0.3 -0.4
Gold $1,196.57 0.1 9.1
MSCI World Index 1,110.10 2.0 -5.0
Economic Events:
Forecast Prior Time
(London)
U.K. GDP 0.6 0.3 9:30
To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net
http://www.bloomberg.com/news/2010-07-23/copper-heads-for-best-week-in-five-months-in-london-on-demand-lme-preview.html
Zinc drops 1.6%, Copper Declines for the First Day This Week in London Trading: LME Preview
By Chanyaporn Chanjaroen - Jul 22, 2010
Copper declined in London for the first day this week after Federal Reserve Chairman Ben S. Bernanke said the outlook for the world’s largest economy remains “unusually uncertain.”
-- Copper fell $85, or 1.2 percent to $6,775 a metric ton on the
London Metal Exchange at 7:10 a.m. Relative Strength Index 54.5.
-- Aluminum dropped 0.7 percent to $1,995 a ton. RSI 51.1.
-- Zinc declined 1.6 percent at $1,888 a ton. RSI 54.3.
-- Lead lost 1.3 percent at $1,841 a ton. RSI 54.3.
-- Nickel retreated 0.7 percent to $19,365 a ton. RSI 48.4.
-- Tin dropped 1.7 percent at $18,050 a ton. RSI 55.
Other markets: Last % Change % YTD
U.S. Dollar Index 83.132 -0.2 6.8
Crude oil $76.40 -0.2 -3.7
Gold $1,183.10 -0.2 7.9
MSCI World Index 1,087.29 -0.1 -7.0
Economic Events:
Forecast Prior Time
(London)
EC PMI composite 55.5 56.0 9:00
EC industrial new orders -0.1% 0.6% 10:00
U.S. initial jobless claims 445K 429K 13:30
Euro zone consumer confidence -17 -17 15:00
U.S. existing home sales 5.10M 5.66M 15:00
U.S. leading indicators -0.3% 0.4% 15:00
To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.net.
http://www.bloomberg.com/news/2010-07-22/copper-declines-for-the-first-day-this-week-in-london-trading-lme-preview.html
Zinc dips, Copper Climbs for a Third Day in Asia as Inventories Continue to Contract
By Glenys Sim - Jul 21, 2010
Copper climbed for a third day in Asia as inventories extended their declines, fueling expectations that demand remains robust.
Copper for three-month delivery on the London Metal Exchange gained as much as 0.8 percent to $6,695.50 a metric ton, and traded at $6,670 at 3:22 p.m. in Singapore. October copper on the Shanghai Futures Exchange rose as much as 1 percent to 53,600 yuan ($7,908) a ton, before ending at 53,350 yuan.
Copper stockpiles in LME warehouses fell yesterday for the 23rd day, the longest slump in more than a year. Stockpiles tallied by the LME stood at 419,600 tons, the lowest level since Nov. 18, down 16 percent this year.
“The continued decline in inventories provides a supportive background,” Zhao Kai, an analyst at Jinrui Futures Co., said from Shenzhen. “Everyone’s expecting the global economy to slow in the second half of this year, however, slow growth doesn’t mean no growth.”
The metal used in electrical wiring and pipes rose as much as 2.5 percent yesterday, the most in two weeks, after U.S. building permits increased for the first time since March. The U.S. is the second-largest copper consumer after China, and builders are the biggest users of the metal.
“The increasing correlation between prices and inventory developments indicates that fundamentals specific to base metals are coming back into focus,” Stefan Graber, an analyst at Credit Suisse Group AG in Singapore, wrote in a note today. “The longer-term outlook remains positive.”
Copper Shipments
China’s refined-copper imports fell for a third month in June to 211,957 tons as lower domestic prices discouraged purchases and local output surged, the customs office said today. That’s 24 percent less than in May and 44 percent less than a year earlier, according to Bloomberg calculations.
Futures in China, which include a 17 percent value-added tax and import fees, traded at a discount to London contracts in June, after losing 4.3 percent compared with 3.5 percent in Shanghai. Domestic output of the refined metal rose to a record last month, offsetting the drop in imports amid steady demand.
“The market was expecting the decline in the refined numbers because of the negative arbitrage last month,” said Li Ye, an analyst at Minmetals Starfutures Co. “Domestic users are also trying to work off the metal already in the country rather than import more, judging from the recent fall in stockpiles.”
Inventories monitored by the Shanghai Futures Exchange dropped for a second month, by 21 percent in June, the biggest monthly decline since April 2009.
Aluminum in London rose 0.4 percent to $1,978 a ton, while nickel climbed 0.2 percent to $19,155 a ton. Zinc fell 0.6 percent to $1,863 a ton, lead dropped 0.7 percent to $1,826 a ton, and tin was unchanged at $18,240 a ton at 3:09 p.m. in Singapore.
http://www.bloomberg.com/news/2010-07-21/copper-gains-for-third-day-as-stockpiles-decline-to-lowest-since-november.html
Zinc advances, Copper May Rise in New York on Longest Streak of Stock Declines in a Year
By Anna Stablum - Jul 20, 2010
Copper may rise for a second day in New York on the longest streak of inventory declines in more than a year and on gains by Chinese equities that fueled optimism about the demand outlook.
Stockpiles of copper tracked by the London Metal Exchange shrank for a 23rd day today. Chinese shares rallied for a second day on prospects that the state may relax tightening measures as the economy slows. Concern about efforts to curb growth in China, the world’s biggest copper user, contributed to LME metal’s 16 percent drop in the second quarter.
“Stronger Chinese equities suggest that the prospects for the Chinese economy are improving,” David Thurtell, a Citigroup Inc. analyst in London, said by telephone. “Copper stocks keep falling.”
Futures for September delivery gained 0.85 cent, or 0.3 percent, to $2.9465 a pound at 8:05 a.m. on the Comex in New York, paring a gain of as much as 1.5 percent. Copper for delivery in three months added 0.5 percent to $6,542 a metric ton on the LME.
LME-monitored copper inventories fell to 419,600 tons, the lowest level since Nov. 18. The current streak of drops is the longest since a 40-session run that ended on July 2, 2009, data compiled by Bloomberg shows. Stockpiles are down 16 percent this year and on course for the first annual drop since 2004.
Discount Narrows
Bookings to remove copper from LME warehouses jumped 5.7 percent to 33,050 tons. Immediate-delivery metal’s discount to the three-month price, the so-called contango, narrowed to $15.25 yesterday from $16.25 in the previous session and $21 a week ago.
Prices pared gains as the dollar rebounded. The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, advanced as much as 0.6 percent, wiping out a drop. A stronger dollar makes metals priced in the currency more expensive in terms of other monies.
Chinese economic growth slowed to 10.3 percent in the second quarter and the consumer price index dropped 0.6 percent in June from May, signaling a diminishing risk of overheating, figures showed last week. Industrial output in the country rose 13.7 percent last month, less than all but one of 27 forecasts in a Bloomberg News survey.
“Certainly last week’s GDP data showed a moderation in growth, but more importantly, the CPI fell, which gives Beijing more scope to take its foot off the brake,” Citigroup’s Thurtell said. “That is good for metals demand.”
More Usage, Limited Supply
Increased copper consumption and limited supplies of refined and scrap metal will support prices, Laredo, Texas-based researcher Harbor Intelligence said in a monthly report e-mailed yesterday. Usage will outpace supply by 125,000 tons this year, with the deficit widening to 180,000 tons next year, according to the report.
“Prices have exited the correction/bear-market phase, and we should expect higher prices for the rest of the year and early 2011,” Harbor Intelligence said. Comex copper will average $3.28 a pound ($7,231 a ton) this year before rising to $3.70 next year, the researcher predicted.
Still, a report due at 8:30 a.m. Washington time probably will show that housing starts in the U.S., the second-largest copper consumer, fell in June to the lowest level of the year, economists said. Work began on 577,000 houses, down 2.7 percent from May and the fewest since December, according to the median estimate in a Bloomberg News survey.
Construction accounts for a quarter of copper demand, according to the Copper Development Association.
Aluminum, Tin
Aluminum for three-month delivery on the LME fell 1 percent to $1,953 a ton after stockpiles increased the most in four months. Inventories in LME warehouses rose 1.1 percent, the biggest climb since March 18, to 4.42 million tons.
Cash metal’s discount to the three-month contract, widened to $21.50 yesterday. It shrank on July 15 to $16.25, the narrowest closing level since April 2007.
Lead gained 0.6 percent to $1,785 a ton and nickel advanced 0.2 percent to $18,840 a ton. Zinc climbed 1.7 percent to $1,838 a ton and tin fell 0.3 percent to $17,900 a ton.
http://www.bloomberg.com/news/2010-07-20/copper-may-rise-in-new-york-on-longest-streak-of-stock-declines-in-a-year.html
$2.9535 Copper Rises On Inventory Draws, Stable Equities
Jul 19, 2010 (Dow Jones Commodities News via Comtex) -- By Matt Day
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Copper futures rose Monday as declining inventories and stability in equities led to speculation that demand may strengthen despite worries about the pace of economic recovery.
The most actively traded contract, for September delivery, rose 2.1 cents, or 0.7% to $2.95 a pound on the Comex division of the New York Mercantile Exchange.
Copper extended gains after U.S. equities opened higher on cautious optimism about coming economic indicators. Analysts said commodities traders would focus on the week's housing and corporate earnings reports as a measure of coming demand.
Meanwhile, copper housed in London Metal Exchange-monitored warehouses continued their decline Monday, dropping by 3,575 metric tons, to 422,850. LME inventories have fallen 6% in July.
The trend is particularly significant because it goes against an expected summer build in stockpiles, said Gayle Berry, analyst with Barclays Capital. The average daily draw in stocks has almost doubled in July from the previous month's levels, Berry said, and total 2010 demand should come in at double the bank's estimates made in January.
Copper investors would also continue to track movements in U.S. equities markets, said Charles Nedoss, senior market strategist with Olympus Futures in Chicago. He said it would take better-than-expected economic data to push prices above the psychologically important $3 a pound mark.
The metal is tied to global economic activity because of its uses in wiring and piping, making prices sensitive to economic sentiment and the current growth outlook. Copper futures were hit hard earlier this year by worries about euro-zone sovereign debt and a slowdown in U.S. growth.
-By Matt Day, Dow Jones Newswires; 212-416-4986; matthew.day2@dowjones.com
(END) Dow Jones Newswires
07-19-10 1002ET
http://news.tradingcharts.com/futures/3/7/142604773.html
Zinc, and Copper Head For Weekly Decline
on Signs China, U.S. Growth is Easing
By Bloomberg News - Jul 16, 2010
Copper declined, heading for a weekly drop, on signs that economic growth is slowing in China and the U.S., the world’s two largest consumers of the metal.
Copper for three-month delivery lost 0.3 percent to $6,660 a metric ton on the London Metal Exchange at 2:38 p.m. in Shanghai, a 1.5 percent loss this week. Zinc rose 1.3 percent to $1,832 a ton, narrowing this week’s loss to 3.8 percent.
China’s economic growth eased to 10.3 percent in the second quarter and industrial production slowed more than forecast in June. The U.S. Federal Reserve trimmed its growth forecast and the country’s manufacturing contracted in June by the most in a year. Copper, used in construction and home appliances, had its first quarterly loss since 2008 in the April-to-June period on concerns that the global economic recovery was weakening.
“Equities responded poorly to the economic data, damping sentiment for metal investors, who have been struggling for a direction,” Zhang Hao, an analyst at Citic Newedge Futures Co., said from Shanghai today.
Declines in U.S. equities and the dollar are pulling metals in opposite directions and “locking the market in a narrow trading range that’s expected to stay for one or two more weeks”, Zhang said.
The Dollar Index, a six-currency gauge of the dollar’s value, was headed for a sixth weekly drop. Commodities, priced in the dollar, usually move counter to the currency.
Still, China and India’s construction industries will drive copper and zinc prices higher this year, said Thomas Findley, chief executive officer of Canadian exploration company Rio Cristal Zinc Resources Corp.
Shrinking Inventory
Copper inventories monitored by the LME have shrunk 15 percent this year. Cancelled warrants, or metal earmarked for delivery, jumped 11 percent yesterday.
“Recent declines in LME stockpiles often occurred in Asian warehouses, implying China may be increasing purchases,” Tan Wentao, an analyst at HNA Topwin Futures Co., said from Shanghai.
Copper for October delivery in Shanghai added as much as 0.7 percent to 53,260 yuan ($7,865) a ton and last traded at 53,130 yuan. Aluminum in London rose 0.2 percent to $2,019 a ton, while nickel dropped 0.4 percent to $19,320 a ton. Lead advanced 0.6 percent to $1,809 a ton and tin rose 0.8 percent to $18,080 a ton as of 3 p.m. in Shanghai.
http://www.bloomberg.com/news/2010-07-16/copper-zinc-head-for-weekly-decline-on-signs-china-u-s-growth-is-easing.html
Zinc declines, Copper Drops in London on Weaker Economic Expansion in China: LME Preview
By Chanyaporn Chanjaroen - Jul 15, 2010
Copper fell on the London Metal Exchange after China’s economic expansion eased in the second quarter, signaling a deeper second-half slowdown that may add to risks for the global economy.
-- Copper fell 1.2 percent at $6,647.25 a metric ton on the
London Metal Exchange at 8:10 a.m. Relative Strength Index 50.5.
-- Aluminum dropped 0.3 percent to $2,003 a ton. RSI 52.2.
-- Zinc declined 0.8 percent at $1,835 a ton. RSI 49.1.
-- Lead lost 1 percent at $1,810 a ton. RSI 51.3.
-- Nickel retreated 0.3 percent at $19,347 a ton. RSI 46.7.
-- Tin added 0.1 percent at $18,000 a ton. RSI 56.5.
Other markets: Last % Change % YTD
U.S. Dollar Index 83.428 0.0 7.2
Crude oil $76.57 -0.5 -3.5
Gold $1,210.05 0.2 10.3
MSCI World Index 1,110.88 -0.2 -4.9
Economic Events:
Forecast Prior Time
(London)
ECB publishes July report 9:00
U.S. June producer price index -0.1% -0.3% 13:30
U.S. initial jobless claims 445K 454K 13:30
U.S. Empire manufacturing 18.0 19.57 13:30
U.S. June industrial production -0.1% 1.3% 14:15
U.S. June capacity utilization 74.1% 74.1% 14:15
http://www.bloomberg.com/news/2010-07-15/copper-drops-in-london-on-weaker-economic-expansion-in-china-lme-preview.html
Zinc down, Copper Drops in London as Economic Growth Concerns Persist: LME Preview
By Chanyaporn Chanjaroen - Jul 14, 2010
Copper fell in London as concerns about the strength of the global economic recovery persist. Aluminum and nickel also declined.
-- Copper fell 0.5 percent to $6,651.50 a metric ton on the
London Metal Exchange at 7:10 a.m. Relative Strength Index 50.9.
-- Aluminum dropped 0.1 percent to $1,993 a ton. RSI 51.
-- Zinc declined 1.2 percent at $1,843 a ton. RSI 49.9.
-- Lead lost 0.7 percent at $1,812 a ton. RSI 51.7.
-- Nickel slid 0.4 percent to $19,475 a ton. RSI 48.
-- Tin fell 0.6 percent to $17,900 a ton. RSI 54.9.
Other markets: Last % Change % YTD
U.S. Dollar Index 83.589 0.1 7.4
Crude oil $76.87 -0.4 -3.1
Gold $1,212.35 0.0 10.5
MSCI World Index 1,111.98 0.3 -4.8
Economic Events:
Forecast Prior Time
(London)
Euro zone June CPI 0.0% 0.1% 10:00
Euro zone May Indus. Production 1.2% 0.9% 10:00
U.S. June Advance retail sales -0.3% -1.2% 13:30
U.S. business inventories 0.2% 0.4% 15:00
Minutes of FOMC meeting 19:00
http://www.bloomberg.com/news/2010-07-14/copper-drops-in-london-as-economic-growth-concerns-persist-lme-preview.html
It's pretty close M. It dropped to .295 last week when metals were getting creamed.
I picked up some more when the ask dropped to .33 and .34 at that time.
You might be able to get something at the bid around .30 though. The biggest problem is this is pretty thinly traded (at least on the "F" ticker), so getting fills at the bid can be touch and go.
Ask has been bouncing around between .34 and .37.
Copper inventories are down, so share prices could swing with good economic news in just about any sector.
I never thought I'd see these prices again so I'm ecstatic!
Has a bottom been put in on this one? I still have my eye on getting some shares...
Zinc down 1.8%, Copper Declines in London as China Vows to Enforce Curbs on Real Estate
By Bloomberg News - Jul 13, 2010
Copper dropped for a second day on concern that China’s determination to rein in real-estate speculation will reduce demand for the metal used in pipes and wires. Aluminum, zinc, lead and nickel also fell.
Copper for three-month delivery decreased as much as 0.9 percent to $6,568 a metric ton on the London Metal Exchange and traded at $6,580 at 3:10 p.m. in Shanghai. Aluminum fell 0.6 percent to $1,960 a ton after better-than-expected quarterly results from Alcoa Inc.
China’s benchmark stock index tumbled the most in two weeks after the government quashed speculation it will abandon real- estate curbs that drove property prices to snap 15 months of gains. The country will “strictly” enforce housing policies, such as lending rules, to prevent speculative investment, the Ministry of Housing and Urban-Rural Development said today.
“We see a new round of declines looming on macro uncertainties,” Shi Wenzhu, an analyst at Great Wall Futures Co., said from Shanghai. “Demand prospects in China are turning bearish too now that we’re in the low-production season.”
A boom in housing construction has led to a surge in China’s appetite for raw materials. Copper has advanced 35 percent in the past 12 months on the global economic recovery, led by China, the largest metals user. Aluminum has gained 26 percent in the past year.
“We have bad news from the macro side now and then but I don’t think a double dip is likely nor is a slump in metal prices,” said Edward Fang, an analyst at China International Futures (Shanghai) Co.
Global Consumption
Alcoa, the largest U.S. aluminum producer, reported second- quarter profit that topped analysts’ projections yesterday as higher metal prices boosted sales. Stronger demand will increase global consumption 12 percent this year compared with the 10 percent gain previously forecast, the company said.
Smelters in China, the world’s largest aluminum producer, may idle as much as 1.5 million tons of production capacity in the third quarter as prices of the metal have fallen below some of the producers’ costs, Alcoa said yesterday.
Zijin Mining Group Co. said that a copper smelter at its Zijinshan mine has been closed after a leak. Heavy rain caused acidic wastewater to flow into a river, killing fish, the company said in a statement.
“A small copper smelter as Zijin doesn’t pose any impact on domestic supplies,” Great Wall’s Shi said.
Copper for October delivery fell as much as 1.5 percent to 52,250 yuan a ton on the Shanghai Futures Exchange, while zinc slumped as much as 2.1 percent to 14,855 yuan.
Zinc in London lost 1.8 percent to $1,822 a ton, lead fell 0.7 percent to $1,771.50 a ton, nickel dropped 0.7 percent to $19,060 a ton, and tin was 1 percent down at $17,350 a ton.
http://www.bloomberg.com/news/2010-07-13/copper-declines-in-london-as-china-vows-to-enforce-curbs-on-real-estate.html
Zinc slides, Copper Drops in New York as Chinese Imports of Metal Fall for Third Month
By Anna Stablum - Jul 12, 2010
Copper fell in New York and London as imports of metal into China dropped for a third month, stoking concern that demand may wane.
Shipments of copper and copper products into China declined to 328,231 metric tons in June, the customs bureau said July 10. The country is the world’s biggest copper consumer. Prices also retreated today as the dollar strengthened, lifting the U.S. Dollar Index, a six-currency gauge of the greenback’s strength, as much as 0.6 percent.
“Copper imports were certainly weaker than I’d expected,” Nic Brown, an analyst at Natixis Commodity Markets Ltd. in London, said by phone. “For the last two months, China has been working off inventory.”
Futures for September delivery slid 5 cents, or 1.6 percent, to $3.0035 a pound at 8:27 a.m. on the Comex in New York. Copper for delivery in three months fell 2.1 percent to $6,620 a ton on the London Metal Exchange. All of the six main metals traded on the LME dropped.
A stronger dollar makes metals priced in the currency more expensive in terms of other monies. The dollar index has gained 8.2 percent this year, contributing to LME copper’s 10 percent slide.
Copper also has dropped on concern that demand may wane in China as the government moves to restrain the nation’s surging economy. Figures due July 15 probably will show that Chinese gross domestic product expanded 10.5 percent in the second quarter, down from 11.9 percent in the prior period, according to economists surveyed by Bloomberg News.
Imports of Scrap
“We expect the second quarter to be substantially slower than the first quarter,” said Brown of Natixis. “If China is slowing to a more sustainable pace of growth as stimuli wear off, that isn’t a problem. If it is slowing more aggressively than that, it may become a problem.”
Chinese imports of copper scrap rose to 350,000 tons in June, according to the report. The gain “surprised market participants, as stricter customs rules were expected to undermine imports,” Marc Elliott, an analyst at Fairfax IS in London, said in a report.
Copper stockpiles tracked by the LME shrank for a 17th day to 435,250 tons, the lowest level since Nov. 27, according to a daily LME report. They’re down 13 percent this year and headed for the first annual drop since 2004. Bookings to remove metal from LME warehouses fell for a third day, down 7.5 percent to 27,350 tons.
Copper futures outstanding, or market open interest, rose to 443,072 contracts as of July 8, the highest level since March 5, 2009, LME data showed. Aluminum open interest rose to the highest since August last year, the figures showed.
Aluminum for three-month delivery on the LME fell 1.2 percent to $1,979.25 a ton. Chinese imports of the lightweight metal and aluminum products slid to about 74,580 tons last month, according to the report.
Lead declined 1.7 percent to $1,814.50 a ton and nickel dropped 1.4 percent to $19,232 a ton. Zinc slid 2.4 percent to $1,858 a ton and tin declined 0.3 percent to $17,590 a ton.
http://www.bloomberg.com/news/2010-07-12/copper-drops-in-london-as-reduced-imports-in-china-may-signal-slower-usage.html
Zinc gains, Copper Advances, On Course for Weekly Gain, as Stockpiles Keep Declining
By Anna Stablum - Jul 9, 2010
Copper rose in New York and London, on course for a weekly advance, as inventories dropped further, signaling steady demand.
Copper stockpiles tracked by the London Metal Exchange shrank for a 16th day and slid for a 20th week in a row. In Shanghai, inventories contracted for a ninth week in 10. Prices also increased as the MSCI World Index of equities advanced for a fourth day.
“Base metals have benefited from improved risk sentiment over the past week, gradually trending higher, also helped by persistent stock draws,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said in an e-mail today.
Futures for September delivery gained 1.75 cents, or 0.6 percent, to $3.033 a pound at 8:15 a.m. on the Comex in New York. The most-active contract is up 4 percent this week. Copper for delivery in three months rose 1.2 percent to $6,695 a metric ton on the LME.
Stockpiles tracked by the LME declined to 436,900 tons, the lowest level since Nov. 27. They’re down 13 percent this year, headed for the first annual drop since 2004. Bookings to remove metal from LME warehouses fell for a second day, sliding 8.9 percent to 29,550 tons.
Stockpiles in Shanghai
Inventories monitored by the Shanghai Futures Exchange dropped to 117,459 tons this week, the exchange said on its website today.
“Shanghai stocks are still falling, which is a very positive sign,” VTB Capital’s Kryuchenkov said.
Copper futures outstanding, or market open interest, rose to the highest level since March 5, 2009, LME data showed. Open interest was up 14 percent from this year’s low to 441,402 contracts as of July 7. Aluminum open interest rose to the highest since August last year, the figures showed.
Nickel for three-month delivery on the LME dropped 0.8 percent to $19,238 a ton. Vale SA workers at two Ontario plants voted to end their year-long strike, the United Steelworkers union said, closing the longest industrial dispute in the company’s 67-year history.
Aluminum rose 0.2 percent to $1,992.50 a ton. Immediate- delivery metal’s discount to the three-month price, the so- called contango, narrowed to $20 a ton yesterday, the lowest level since July 24, 2009, from $22.75 in the prior session.
“Financing deals have restricted spot availability,” Gayle Berry, an analyst at Barclays Capital in London, said in a report. “This tightening of the nearby spreads also reflects what we believe is an improvement in fundamentals, with demand continuing to recover.”
LME-monitored aluminum inventories have shrunk 5 percent so far this year to 4.40 million tons. A drop for all of 2010 would be the first annual decline since 2005.
Lead added 0.1 percent to $1,829.25 a ton, zinc gained 0.3 percent to $1,861 a ton and tin climbed 0.6 percent to $17,660 a ton.
http://www.bloomberg.com/news/2010-07-09/copper-advances-in-london-on-weaker-dollar-further-decline-in-inventories.html
Zinc climbs, Comex Copper Inches Higher After Economic Data
Jul 08, 2010 (Dow Jones Commodities News via Comtex) -- By Allen Sykora
Of DOW JONES NEWSWIRES
Improving global economic data helped copper move tepidly higher early Thursday, but with the upside limited by worries about just how strong any recovery might be.
Around 9:09 a.m. EDT (1309 GMT), copper for September delivery was 2.45 cents, or 0.8%, higher at $3.0395 per pound on the Comex division of the New York Mercantile Exchange.
William Adams, analyst with Fastmarkets.com, cited strength in equities in the U.S. Wednesday and Asian and stock bourses overnight as a factor helping sentiment modestly. Copper traders often look toward moves in equities as a proxy for the economy and thus potential copper demand.
"Risk appetite has picked up a bit, and some bargain hunting has come into the metals as well," he said.
A New York trader said modest support came from the largest drop in first-time U.S. jobless claims since mid-April, although the decline was not large enough to trigger a more substantial rally in copper. Weekly claims fell 21,000 to 454,000, when expectations had been for a 12,000 decline.
This comes on the heels of favorable overseas data. German May industrial production rose 2.6%, well above the consensus forecast of 1%. Australian employment rose 45,900 jobs last month, beating the forecast for a 15,000 increase. Meanwhile, the International Monetary Fund raised its 2010 global growth forecast to 4.6% from the previous estimate of 4.2%.
Adams suggested the bounce in copper lately may not be keeping pace with equities, however.
"The overall economic picture hasn't been that strong," he said. "So that's holding it back a bit."
Last week, there was a string of soft economic reports in the U.S. and China that dented sentiment, before improvement in global data this week.
The New York trader said copper may take its next cue from upcoming corporate earnings reports. If they should be collectively stronger than forecast, this would bode well for equities and economic prospects, which in turn would improve prospects for copper demand.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765; allen.sykora@dowjones.com
http://news.tradingcharts.com/futures/2/1/142154312.html
Zinc falls, Copper Advances in New York, Erasing Drop, as Stockpiles Keep Shrinking
By Anna Stablum - Jul 7, 2010
Copper rose in New York, erasing a drop, as the dollar pared a climb and shrinking stockpiles of metal helped to support prices.
The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, gained 0.1 percent, trimming an advance. Stockpiles tracked by the London Metal Exchange dropped for a 14th day to the lowest level since Nov. 30, and bookings to remove copper from warehouses increased for a second day.
“With little economic data to go on yet again, base metals are still looking to the equity and FX markets for direction,” Leon Westgate, a Standard Bank Plc analyst in London, said in a report. “Falling LME stocks over the balance of 2010 would be an unusual event given recent history and something we would regard as very bullish for prices, particularly in early 2011.”
Futures for September delivery rose 2.5 cents, or 0.8 percent, to $2.996 a pound at 9:09 a.m. on the Comex in New York, erasing a drop of as much as 0.9 percent. Copper for delivery in three months added 0.2 percent to $6,620 a metric ton on the LME.
Gains by the dollar make metals priced in the U.S. currency more expensive in terms of other monies. The dollar index has climbed 8.1 percent this year, contributing to LME copper’s 10 percent slide.
LME copper inventories dropped to 439,350 tons, the lowest level since Nov. 30, and are down 13 percent so far in 2010. A decline in stocks for the full year would be the first since 2004.
Bookings to remove copper from LME warehouses rose 2.5 percent to 35,075 tons, just 350 tons below the level on July 1, which was the highest in almost four months.
Aluminum for three-month delivery on the LME slipped 0.1 percent to $1,993 a ton, nickel rose 1.1 percent to $19,100 a ton and zinc fell 0.2 percent to $1,846 a ton. Tin and lead were unchanged at $17,600 a ton and $1,780 a ton, respectively.
http://www.bloomberg.com/news/2010-07-07/copper-advances-in-new-york-erasing-drop-as-stockpiles-keep-shrinking.html
Farallon announces details of evaluation of other deposits at Campo Morado
VANCOUVER, July 6, 2010 /PRNewswire via COMTEX/ -- Contractors to be selected by September 1, 2010
Farallon Mining Ltd. ("Farallon" or the "Company") (CA:FAN) announces that the Company has established the framework and timeline for the review of the original four deposits at Campo Morado. The objective of the review is to evaluate the economic viability of building a second mine at Campo Morado.
This study will investigate a number of development alternatives including construction of a new stand-alone mill, expanding the current mill at G-9, blending with ore from G-9, or utilizing campaign milling to extend the life of G-9. The primary focus of the study will be to address the options for maximizing the recovery of precious metals in the Reforma, El Rey, El Largo and Naranjo deposits, since the resource at Campo Morado is estimated to include just under 1 million ounces of gold and 60 million ounces of silver(1) (see June 29, 2010 news release for resource table.)
The scope of work will include:
- Metallurgical testwork including "pilot plant" programs in the G-9 mill - Flowsheet design - Mine planning - Equipment requirements - Manpower requirements - Capital and operating costs - General Arrangement drawings and engineering design - Construction plans and timetable - Infrastructure requirements
Dr. David Stone, P.Eng., of Hunter Dickinson Services Inc. and a consultant to Farallon, will be the project manager for this study, reporting directly to Farallon's President Mr. Dick Whittington. The project schedule targets the awarding of contracts for the study work by September 1, 2010, with the final study scheduled for completion by July 1, 2011.
Dick Whittington said: "I am very excited to be moving forward with this study. The unlocking of value from the original four deposits is now a significant component of our ability to grow the company organically. The objective of this initiative is to have a second mine at Campo Morado by July 1, 2013."
Farallon operates the G-9 zinc mine on its Campo Morado Property in Guerrero State, Mexico. G-9 is a 1,500 tonnes per day, underground, zinc mine with important by-product credits of copper, gold, and silver, and with operating costs in the lowest 10% of zinc producers worldwide. The Company is targeting to produce at an annualized production rate of 120 million pounds of zinc and 15 million pounds of copper per year.
ON BEHALF OF THE BOARD OF DIRECTORS J.R.H. (Dick) Whittington, President & CEO No regulatory authority has approved or disapproved the information contained in this news release
Forward Looking Information
This news release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve or resource potential, continuity of mineralization, exploration drilling, operational activities, production rates, costs to completion and events or developments that the Company expects, or is targeting, are forward-looking statements. Although the Company believes that the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements and may require achievement of a number of operational, technical, economic, financial and legal objectives. The likelihood of continued future mining at Campo Morado is subject to a large number of risks, including obtaining lower than expected grades and quantities of mineralization and resources, lower than expected mill recovery rates and mining rates, changes in and the effect of government policies with respect to mineral exploration and exploitation, the possibility of local disputes including blockades of the company's property, the possibility of adverse developments in the financial markets generally, fluctuations in the prices of zinc, gold, silver, copper and lead, obtaining additional mining and construction permits, preparation of all necessary engineering for ongoing underground and processing facilities as well as receipt of additional financing to fund mine construction, development and operation, if needed. Such funding may not be available to the Company on acceptable terms or on any terms at all. For more information on the Company and the risk factors inherent in its business, investors should review the Company's Annual Information Form at .
Information Concerning Estimates of Indicated Resources
This news release uses the term "indicated resources". Farallon advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in this category will ever be converted into reserves
--------------------------------- (1) Estimated indicated resources total 11.2 million tonnes of 4.7% zinc, 0.7% copper, 1.4% lead, 165 grams per tonne of silver and 2.7 grams per tonne of gold.
SOURCE Farallon Mining Ltd.
Copyright (C) 2010 PR Newswire. All rights reserved
http://custom.marketwatch.com/custom/tdameritrade-com/html-story.asp?guid={6DD94BCC-FF75-4740-BD1D-5141BA3AC03D}
$2.9994 - Comex Copper Lifted By Equities, Inventory Draws
Jul 06, 2010 (Dow Jones Commodities News via Comtex) -- By Allen Sykora
Of DOW JONES NEWSWIRES
Strength in equities on improved optimism about the global economy, coupled with a continued decline in warehouse inventories, pushed copper futures to their strongest level in a week early Tuesday.
Around 9:11 a.m. EDT (1311 GMT), copper for September delivery was 10.05 cents, or 3.5%, higher at $3.0165 per pound on the Comex division of the New York Mercantile Exchange.
"Stocks are helping it out," said Bob Haberkorn, senior market strategist with Lind-Waldock in Chicago.
Copper traders often look toward equities as a gauge of economic sentiment and thus demand for commodities. Analysts linked gains in global equities largely to an upbeat assessment of the economy by Australia's central bank, which left interest rates unchanged but warned of near-term inflation risks.
China's Shanghai Composite Index rose 1.9% overnight, and the September S&P 500 futures are 1.5% stronger in early trading.
Support for copper also came from a decline of 2,800 metric tons in London Metal Exchange inventories to 441,700, said John Gross, independent metals-industry consultant based in Exeter, R.I.
"We're having steady drawdown of the LME inventories," Gross said. "That has been consistent over the past several weeks."
Warehouse stocks are monitored as an indicator of demand for the commodity. These are falling to levels that may be hard for the market to ignore, with much of the previous focus on whether the global economy recovery would falter.
LME copper inventories are now at their lowest level since November, Gross said. They are down 32% since the mid-February peak of 649,543.
A New York trader said benchmark copper could get another boost if it can get above resistance around $3.05 to $3.10 on technical charts. Many traders evened up positions ahead of the long Fourth of July weekend and will be looking to re-enter the market, he added.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765; allen.sykora@dowjones.com
(END) Dow Jones Newswires
07-06-10 0920ET
Zinc climbs, Copper Advances in New York, London on Weakening Dollar, U.S.
Copper rose in New York and London, paring this week’s losses, as the dollar weakened and a U.S. employment report showed the jobless rate declined more than forecast.
The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, fell as much as 0.7 percent, making dollar-priced metals cheaper to holders of other monies.
Payrolls declined by 125,000 last month as the government cut 225,000 temporary workers conducting the 2010 census, Labor Department figures in Washington showed today. Economists projected a retreat of 130,000, according to the median forecast in a Bloomberg News survey. The jobless rate dropped to 9.5 percent from 9.7 percent. Economists had forecast the rate would rise to 9.8 percent.
The “U.S. payrolls report was slightly disappointing, but the sharp fall in the unemployment rate will help consumer sentiment” said David Thurtell, an analyst at Citigroup Inc. in London. “The softer U.S. dollar should underpin LME prices.”
Futures for September delivery gained 6.3 cents, or 2.2 percent, to $2.941 a pound at 8:44 a.m. on the Comex in New York. Copper for delivery in three months rose 2.5 percent to $6,490 a metric ton on the London Metal Exchange.
Comex copper dropped 5.4 percent this week as manufacturing in China and the U.S., the world’s largest metals consumers, expanded at a slower pace in June. The U.S. payrolls report will be followed at 10 a.m. in Washington by a report forecast to show factory orders fell 0.5 percent in May after a rise of 1.2 percent in the previous month.
Aluminum for three-month delivery on the LME advanced 1.8 percent to $1,960 a ton. Lead rose 1.6 percent to $1,762 a ton, nickel gained 1 percent to $19,180 a ton and zinc climbed 3.5 percent to $1,800 a ton. Tin rose 1.4 percent at $17,200 a ton.
http://www.bloomberg.com/news/2010-07-02/copper-rebounds-on-weakening-dollar-speculation-weekly-drop-was-overdone.html
Farallon Announces First Quarter Financial and Operating Results
$6.2 Million Net Earnings
25m lb of Zinc Produced at a Total Cash Cost1 of $0.38/lb payable zinc
May 12, 2010, Vancouver, BC - Farallon Mining Ltd. ("Farallon" or the "Company") (TSX:FAN) announces its financial and operating results for the three months ended March 31, 2010. Currency amounts are stated in United States Dollars, unless otherwise noted.
The Company's G-9 mine produced a record 25.0 million pounds of zinc and 2.1 million pounds of copper in concentrates at a total cash cost1 of $0.38/lb of payable zinc. Farallon reported net earnings of $6.2 million and the Company generated $6.0 million in cash from operations before changes in non-cash working capital.
"The G-9 mine has increased production every quarter since production began in the first quarter of 2009" said President and CEO Dick Whittington. "Quarterly production has steadily increased from 1,180 tpd to 1,650 tpd, a 40% increase over the last 15 months. With improvements in throughput to over 1,900 tonnes per day in March and April and metallurgical improvements being made, the G-9 mine is now providing steady cash flow and a base from which we can deliver on our objective of becoming a mid-tier, multi-mine company."
Highlights for the three months ended March 31, 2010 ("Q1") compared to the three months ended December 31, 2009 ("Q4") are as follows:
Financial
* Operating earnings of $9.1 million and net earnings of $6.2 million, up from operating earnings of $3.9 million and net earnings of nil in Q4.
* Cash flow from operations before changes in non-cash working capital of $6.0 million, up from $2.2 million in Q4.
* Gross revenues of $37.6 million, up from $32.3 million in Q4.
* Non-GAAP Adjusted EBITDA1 of $9.0 million, up from $4.5 million in Q4.
* Total cash cost per payable pound of zinc1 of $0.38/lb (including $0.31/lb for the month of March 2010), down from $0.44/lb in Q4.
* Working capital of $18.2 million at March 31, 2010, up from $14.9 million at Dec 31, 2009.
Operations
* Processed 152,178 tonnes of ore (average throughput 1,691 tonnes per day - "tpd") grading 9.1% zinc, 1.1% copper, 174 g/t silver and 2.5 g/t gold. Increased throughput rates for the month of March 2010, processing 59,715 tonnes of ore for an average rate of 1,926 tpd or 128% of design.
* Produced 23,365 tonnes of zinc concentrate and 6,952 tonnes of copper concentrate, containing an estimated 25.0 million pounds of zinc, 2.1 million pounds of copper, 420,911 ounces of silver and 4,322 ounces of gold from the G-9 mine.
* Sold approximately 22,420 tonnes of zinc concentrate grading 48% zinc and 9,480 tonnes of copper concentrate grading 14% copper. Payable metals contained in concentrate were 20.0 million pounds of zinc, 2.7 million pounds of copper, 336,000 ounces of silver and 4,106 ounces of gold. Realized metal prices on sales of $0.99/lb zinc and $3.23/lb copper.
* Given the success of increasing mill throughput to over 1,900 tpd in March and April, the Company is revising the scope of the Mill Expansion project to determine the maximum throughput that can be obtained within the approved capital budget of $5.3 million. However, the Company continued with procurement of additional regrind and flotation equipment for the Mill Expansion Project. The project was originally designed to increase mill capacity from 1,500 tpd to 2,000 tpd by July 2010.
Exploration
* Continued exploration drilling at Campo Morado with two surface drills and one underground drill operational as part of a $5.4 million program for 2010.
* Updated the G-9 mineral resource estimate as at December 31, 2009 which includes 3.0 million tonnes of Measured and Indicated Resources at 9.4% zinc and 1.3% copper as well as 0.9 million tonnes of Inferred Resources at 9.2% zinc and 1.1% copper (at a 3.0% zinc cut-off)2.
* Upgraded a portion of the mineral resources as at December 31, 2009 to mineral reserves, including 2.0 million tonnes of Proven and Probable Reserves at 10.0% zinc and 1.34% copper2.
* Initiated an engineering study on the treatment of El Largo, Naranjo and El Ray deposits. The study is investigating the mining and processing of 4.9 million tonnes of Indicated Mineral Resources at 6.4% zinc, 2.1 g/t gold and 165 g/t silver (at a 5% zinc cut-off grade) with the existing mining equipment and processing facilities2.
* As part of its preliminary assessment of the potential for high grade gold zones being present below the main zinc orebodies, the Company announced on April 21, 2010 the discovery of three distinct high-grade gold zones outside the current mineral resources (at a 5% zinc cut-off grade) at the G-9 mine. These zones contain estimated Inferred Mineral Resources of 225,038 tonnes grading 8.6 g/t gold and 407 g/t silver (at a 5 g/t gold cut-off grade)3.
Dick Whittington said "The exploration program at Campo Morado is continuing on three fronts. First, the Company has two surface drills exploring north of the Abajo zone, targeting new lenses on the Abajo horizon. Second, we continue to utilize underground drilling to delineate new high-grade zinc resources in and around the existing G-9 mining operations. Third, the program to evaluate and expand upon the newly announced gold zones is advancing."
This new release should be read in conjunction with the Company's financial statements and MD&A which are available on SEDAR and the Company's website. Farallon will hold a conference call tomorrow, Thursday May 13, 2010, at 8:00 am Pacific time (11:00 am Eastern) to discuss these results. The call can be accessed at (647) 427-7450 or toll-free at (888) 231-8191. A live webcast will also be available at www.farallonmining.com.
Farallon operates the G-9 zinc mine on its Campo Morado Property in Guerrero State, Mexico. G-9 is a 1,500 tonnes per day, underground, zinc mine with important by-product credits of copper, gold and silver. The Company is targeting to produce at an annualized production rate of 120 million pounds of zinc and 15 million pounds of copper per year.
For further details on Farallon, please visit the Company's website at www.farallonmining.com or contact Neil MacRae, Investor Relations Manager, at (604) 638-2160 or within North America at 1-877-688-2050.
ON BEHALF OF THE BOARD OF DIRECTORS
J.R.H. (Dick) Whittington, President & CEO
http://www.farallonresources.com/fan/NewsReleases.asp?ReportID=399266&_Type=News-Releases&_Title=Farallon-Announces-First-Quarter-Financial-and-Operating-Results
Zinc .7820 slips, NY Copper 2.8849 Pressured By Soft Chinese, US Data
Jul 01, 2010 (Dow Jones Commodities News via Comtex) -- By Allen Sykora
Of DOW JONES NEWSWIRES
Copper futures weakened Thursday on continuing worries about the economy after a weak manufacturing survey in China and a rise in U.S. initial jobless claims.
Around 9 a.m. EDT (1300 GMT), copper for September delivery was 4.65 cents, or 1.6%, lower at $2.9040 per pound on the Comex division of the New York Mercantile Exchange.
A report showing that the headline number in China's June Purchasing Managers Index fell "may be a sign that Beijing's tightening measures are gaining traction," said MF global analyst Edward Meir in New York. If so, a slowing in China's economy means potentially lower copper demand in the world's largest consuming nation for the metal.
Copper is an industrial commodity used in construction and manufacturing.
China's official Purchasing Managers Index fell to 52.1 in June from 53.9 in May. This was the second straight month in which it declined, although the 16th straight month it has been above the expansionary threshold of 50. The HSBC China manufacturing index fell for the third month in a row to 50.4 from 52.7 in May.
Worries about the global economy were reinforced when an early-morning report showed that U.S. weekly initial jobless claims rose 13,000 to 472,000, said William Adams, London-based analyst with Fastmarkets.com. The expectation had been for a 2,000 decline.
The data continued a trend of mostly softer reports in the U.S. and China this week.
"The macro side of things is acting as a drag," Adams said. "The market is adjusting to the weaker economic outlook."
Other PMIs around the globe fell as well. HSBC's Indian PMI fell to 57.3 in June from 59.0 in May. The euro-zone PMI slipped to a four-month low of 55.6 in June from 55.8 in May, while the U.K.'s June PMI fell to 57.5 from 58.0 in May.
The U.S. PMI, scheduled for release at 10 a.m. EDT (1400 GMT) by the Institute for Supply Management, also is expected to decline. The consensus forecast is for a June reading of 59, compared to 59.7 in May.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765; allen.sykora@dowjones.com
(END) Dow Jones Newswires
07-01-10 0927ET
http://news.tradingcharts.com/futures/5/2/141866125.html
2.8872 - Comex Copper Pressured By Soft ADP Jobs Report
Jun 30, 2010 (Dow Jones Commodities News via Comtex) --
By Allen Sykora
Of DOW JONES NEWSWIRES
Copper futures slid Wednesday when a weak report on private-sector job growth in the U.S. added to recent worries about the economy and thus demand for industrial metals.
Around 9:21 a.m. EDT (1321 GMT), copper for September delivery was 4.85 cents, or 1.7%, lower at $2.8820 per pound on the Comex division of the New York Mercantile Exchange.
The contract fell as far as $2.8705, its weakest level since June 18.
"The economic outlook is deteriorating," said Frank Lesh, broker and futures analyst with FuturePath Trading in Chicago.
This weighs on industrial commodities such as copper, which is used in construction and manufacturing of big-ticket items such as appliances and automobiles.
Stock-index futures were higher overnight, then turned slightly lower, dragging down copper with them, Lesh said. The main impetus was a report showing that private-sector jobs increased by 13,000 in June. The data, released by payroll giant Automatic Data Processing Inc. and consultancy Macroeconomic Advisors, was less than the 60,000 consensus forecast.
This comes a day after a weak report on U.S. consumer confidence.
Meanwhile, Lesh said, worries persist about the potential for copper demand to weaken in Europe and China. Austerity measures pursued by a number of European governments potentially could slow their economies and thus commodity demand, Lesh said. Meanwhile, Chinese authorities have been looking to cool their economy this year, particularly the real-estate sector.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765; allen.sykora@dowjones.com
(END) Dow Jones Newswires
06-30-10 0928ET
http://news.tradingcharts.com/futures/9/4/141809549.html
Farallon to Review Original Four Deposits at Campo Morado
Approximately One Million Ounces of Gold in Indicated Resources
Studies to Target Building a Second Mine by July 1, 2013
June 29, 2010, Vancouver, BC -- Farallon Mining Ltd. ("Farallon" or the "Company") (TSX:FAN) announces that as a result of the recent rapid rise in gold prices, the Company is formally initiating studies to re-evaluate the Reforma, Naranjo, El Largo and El Rey deposits to assess the feasibility of building a second mine at Campo Morado, with a target start date of July 1, 2013. The Company already has one operation at Campo Morado - the G-9 mine - currently operating at 20 - 30% above design capacity. The second mine would piggy back on infrastructure already in place and be "incremental" to the current G-9 mine operation.
Indicated resources for the Reforma, El Rey, Naranjo and El Largo deposits total 11.2 million tonnes of 4.7% zinc, 0.7% copper, 1.4% lead, 165 grams per tonne of silver and 2.7 grams per tonne of gold (see news release dated September 19, 2005 and Table 1 attached). Contained gold totals 960,000 ounces and contained silver totals 60 million ounces. A map showing the location of these deposits, relative to the Company's operating G-9 mine is attached. The Company ceased evaluation of these deposits in late 2005 after the richness of the G-9 deposit became apparent, and since that time has been exclusively focused on building the G-9 mine and ramping it up to full production, which was achieved in the fourth quarter of last year.
Low metal prices in late 2005, particularly for by-product metals - a key component of any polymetallic deposit, the need for substantial initial capital investment, and testwork indicating low metallurgical recoveries, rendered the deposits uneconomic at that time; however, three significant developments have occurred since then:
1) The price of gold has tripled from $425/oz to $1240/oz as highlighted in the attached price chart for gold;
2) Infrastructure for the G-9 mine, including the mine, a mill, access road, power lines and administration offices has been put in place, and
3) The G-9 mine is fully operational with an established cost profile. Consequently, operating costs for the mining and milling of these deposits can be estimated with a much higher degree of certainty.
Dick Whittington said: "I have continually said that the potential of these deposits is not reflected in Farallon's share price. With approximately one million ounces of contained gold in a gold price environment of $1240/oz and an outlook of continued strength for gold going forward, as well as a fundamental change in the prices of the other metals involved, the value of these deposits has increased significantly since we last looked at them in detail. In combination with mine and mill infrastructure that is already in place and operating costs stabilized, it's time to formally revisit unlocking their value.
Our strong balance sheet and the low cost profile of the G-9 mine will provide the operating and financial platform upon which to build a second mine at Campo Morado. We are initiating studies to re-evaluate these deposits with a target goal of having a second mine in operation by July 1, 2013."
Dr. David Stone, P.Eng, a qualified person and a consultant to Farallon Mining has reviewed this news release on behalf of the Company.
Farallon operates the G-9 zinc mine on its Campo Morado Property in Guerrero State, Mexico. G-9 is a 1,500 tonnes per day, underground, zinc mine with important by-product credits of copper, gold, and silver, and with operating costs in the lowest 10% of zinc producers worldwide. The Company is targeting to produce at an annualized production rate of 120 million pounds of zinc and 15 million pounds of copper per year.
For further details on Farallon, please visit the Company's website at www.farallonmining.com or contact Neil MacRae, Investor Relations Manager, at (604) 638-2160 or within North America at 1-877-688-2050.
ON BEHALF OF THE BOARD OF DIRECTORS
J.R.H. (Dick) Whittington, President & CEO
http://www.farallonresources.com/fan/NewsReleases.asp?ReportID=407322&_Type=News-Releases&_Title=Farallon-to-Review-Original-Four-Deposits-at-Campo-Morado
Zinc slumps, Comex Copper Slides On Global Economic Worries
Jun 29, 2010 (Dow Jones Commodities News via Comtex) --
By Allen Sykora
Of DOW JONES NEWSWIRES
Copper futures slumped Tuesday on worries about economic growth, with global stock markets also weaker after disappointing economic data in China and Japan.
Around 9:10 a.m. EDT (1310 GMT), copper for September delivery was 9.30 cents, or 3%, weaker at $2.9965 per pound on the Comex division of the New York Mercantile Exchange. The nearby July contract slid 8.90 cents, or 2.9%, to $2.9830.
"There are still a lot of doubts about how strong the economy will get," said Stephen Platt, analyst with Archer Financial Services in Chicago.
Thus, he said, the market remains "vulnerable," particularly amid concerns about how strong demand will be from China, the world's largest copper-consuming nation.
A New York trader blamed copper's losses on a combination of overnight weakness in China's stock market, worries about the Chinese economy and a stronger U.S. dollar.
The Conference Board downwardly revised its leading economic indicator for China to a gain of 0.3% for April, compared to the previously reported 1.7% rise. Also, Japan reported that industrial production slipped 0.1% in May, while household spending fell 0.7%.
The September S&P 500 futures were around 14.40 points lower. China's Shanghai Composite Index fell 4.3%, with pressure coming from the economic data and a slightly lower-than-expected pricing range for the domestic part of Agricultural Bank of China's initial public offering. Hong Kong's Hang Seng Index fell 2.3% and Japan's Nikkei Stock Average shed 1.3%.
The euro has fallen to $1.2202 from $1.2276 late Monday on worries about global economic growth. A stronger dollar makes copper more expensive for holders of other currencies and thus can hurt international demand.
Still, there are some supportive factors keeping copper from declining further, Platt said. Inventories stored in London Metal Exchange warehouses keep declining, falling another 1,225 metric tons Tuesday to 451,950. Also, canceled warrants, which are earmarked for delivery, continue to rise.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765; allen.sykora@dowjones.com
(END) Dow Jones Newswires
06-29-10 0926ET
http://news.tradingcharts.com/futures/7/1/141753417.html
Zinc Loses, Copper Drops in London on U.S. Economic Recovery Speculation: LME Preview
By Chanyaporn Chanjaroen - Jun 25, 2010
Copper fell in London, tracking declines in equity markets, as disappointing sales and earnings forecasts by U.S. companies added to signs an economic recovery may slow in the world’s second-largest consumer of the metal.
-- Copper fell 0.9 percent to $6,635 a metric ton on the London
Metal Exchange at 8:06 a.m. Relative Strength Index 49.2.
-- Aluminum dropped 0.1 percent to $1,962.25 a ton. RSI 44.9.
-- Zinc lost 1.3 percent at $1,851 a ton. RSI 49.6.
-- Lead was unchanged at $1,820 a ton. RSI 51.7.
-- Nickel advanced 0.2 percent to $19,434 a ton. RSI 42.1.
-- Tin added 0.3 percent to $18,100. RSI 57.4.
Other markets: Last % Change % YTD
U.S. Dollar Index 85.684 -0.1 10.1
Crude oil $76.29 -0.3 -3.9
Gold $1,243.45 0.0 13.4
MSCI World Index 1,080.33 -0.2 -7.5
Economic Events:
Forecast Prior Time
(London)
U.S. 1Q gross domestic product 3.0% 3.0% 13:30
U.S. 1Q personal consumption 3.5% 3.5% 13:30
U. of Michigan June confidence 75.5 75.5 14:55
http://www.bloomberg.com/news/2010-06-25/copper-drops-in-london-on-u-s-economic-recovery-speculation-lme-preview.html
Zinc gains, Copper Rises in London as Dollar Drops on Rate Speculation: LME Preview
By Chanyaporn Chanjaroen - Jun 24, 2010
Copper climbed in London, leading gains in industrial metals, as the dollar fell on speculation that the Federal Reserve will keep interest rates near zero in order to support a recovery in the world’s largest economy.
-- Copper rose 2.1 percent to $6,654 a metric ton on the London
Metal Exchange at 7:50 a.m. Relative Strength Index 49.9.
-- Aluminum added 0.4 percent to $1,948.50 a ton. RSI 44.7.
-- Zinc gained 1.2 percent at $1,851 a ton. RSI 49.8.
-- Lead rose 0.8 percent at $1,830 a ton. RSI 52.9.
-- Nickel advanced 1.3 percent to $19,528 a ton. RSI 42.8.
-- Tin climbed 1.3 percent to $18,050. RSI 57.1.
Other markets: Last % Change % YTD
U.S. Dollar Index 85.629 -0.1 10.0
Crude oil $76.42 0.1 -3.7
Gold $1,236.30 -0.1 12.7
MSCI World Index 1,098.66 0.3 -6.0
Economic Events:
Forecast Prior Time
(London)
EC April industrial new orders 1.6% 5.1% 10:00
U.S. May durable goods orders -1.4% 2.8% 13:30
U.S. initial jobless claims 463K 472K 13:30
http://www.bloomberg.com/news/2010-06-24/copper-rises-in-london-as-dollar-drops-on-rate-speculation-lme-preview.html
Copper (2.9455), Zinc (.7974) Decline in Shanghai as China Removes Tax Rebates on Exports
By Bloomberg News - Jun 22, 2010
Copper and zinc dropped in Shanghai after China said it will remove export-tax rebates on some products, stoking concern that a domestic supply glut will form.
Copper for September delivery in Shanghai fell as much as 1 percent to 52,340 yuan ($7,680) a ton and traded at 52,460 yuan at 9:21 a.m. local time. Zinc slumped as much as 2 percent to 14,515 yuan a ton and last traded at 14,625 yuan.
Rebates on some copper, zinc, lead, nickel and tin products such as tubes and wires will be removed from July 15, the Ministry of Finance said in a statement yesterday on its website. The tariff change, announced amid increasing trade complaints from the U.S. and the European Union, will also affect steel products, of which China is the largest producer.
“The rebate removal puts immediate pressure on Chinese prices,” Xiao Jing, an analyst at Beijing Capital Futures Co., said today. Copper and zinc may be the most prone to the negative impact as exports of the metals products just started to recover, she said.
Three-month delivery copper dropped as much as 1.1 percent to $6,538 a ton on the London Metal Exchange, before trading at $6,556.
U.S. sales previously owned homes unexpectedly fell in May as demand began to slip even before a government tax credit expires, figures from the National Association of Realtors showed yesterday in Washington. The U.S. is the second-biggest copper user.
Aluminum in London retreated 0.2 percent to $1,955 a ton, zinc lost 0.8 percent to $1,779 a ton, lead declined 1 percent to $1,810. Nickel and tin were yet to trade as of 9:21 a.m. in Shanghai.
--Li Xiaowei. Editors: Jarrett Banks, Matthew Oakley
http://www.bloomberg.com/news/2010-06-23/copper-zinc-decline-in-shanghai-as-china-removes-tax-rebates-on-exports.html
Zinc up slightly, Copper Declines in London After Gains Are Seen as Overdone: LME Preview
By Anna Stablum - Jun 22, 2010
Copper declined in London after jumping by the most in a month yesterday, as gains prompted by speculation about a stronger yuan were seen as overdone.
-- Copper slid 0.6 percent to $6,565 a ton on the London Metal
Exchange at 8:14 a.m. Relative Strength Index 47.
-- Aluminum eased 1.1 percent to $1,940 a ton. RSI 42.
-- Zinc rose 0.2 percent at $1,778 a ton. RSI 43.
-- Lead dropped 1.3 percent at $1,810 a ton. RSI 52.
-- Nickel fell 1.8 percent to $19,500 a ton. RSI 42.
-- Tin was 0.8 percent higher at $18,050 a ton. RSI 58.
Other markets: Last % Change % YTD
U.S. Dollar Index 85.951 0.0 10.4
Crude oil $77.32 -0.6 -2.6
Gold $1,236.9 0.3 12.8
MSCI World Index 1,115.33 -0.5 -4.6
Economic Events:
Forecast Prior Time
(London)
GE IFO-Business Climate 101.2 101.5 09:00
ECB Euro-Zone Current Account SA 1.7B 09:00
U.K. Budget Report 12:30
U.S. Existing Home Sales 6.12M 5.77M 15:00
U.S. Existing Home Sales MoM 6.0% 7.6% 15:00
U.S. Richmond Fed Manufact. Index 20 26 15:00
Euro-Zone Consumer Confidence -19 -18 15:00
http://www.bloomberg.com/news/2010-06-22/copper-declines-in-london-after-gains-are-seen-as-overdone-lme-preview.html
Zinc rises 4.6%, Copper Gains Most in a Month in London on China Yuan Signal: LME Preview
By Chanyaporn Chanjaroen - Jun 21,
Copper advanced the most in a month in London as China signaled an end to its currency’s fixed rate to the dollar, boosting speculation a stronger yuan may increase imports of industrial metals into the world’s largest consumer.
-- Copper added 4.1 percent to $6,700 a metric ton on the London
Metal Exchange at 7:54 a.m. Relative Strength Index 50.6.
-- Aluminum gained 3.7 percent to $2,015.75 a ton. RSI 50.1.
-- Zinc rose 4.6 percent at $1,810 a ton. RSI 45.8.
-- Lead jumped 3.7 percent at $1,810 a ton. RSI 51.4.
-- Nickel advanced 3.6 percent to $20,300 a ton. RSI 48.
-- Tin climbed 3.2 percent at $18,000 a ton. RSI 57.7.
Other markets: Last % Change % YTD
U.S. Dollar Index 85.119 -0.7 9.3
Crude oil $78.87 2.2 -0.6
Gold $1,260.88 0.3 15
MSCI World Index 1,122.28 0.6 -4
http://www.bloomberg.com/news/2010-06-21/copper-gains-most-in-a-month-in-london-on-china-yuan-signal-lme-preview.html
Zinc drops as Copper Pares Gains on U.S. Economic Growth Outlook: LME Preview
By Claudia Carpenter
June 18 (Bloomberg) -- Copper erased early gains in Asia, heading for a weekly decline, after economic reports raised concerns that the U.S. recovery isn’t as strong as expected. Zinc, nickel and lead dropped.
-- Copper fell 0.5 percent to $6,413 a metric ton on the
London Metal Exchange at 8:07 a.m. Relative Strength Index
41.5.
-- Aluminum dropped 0.8 percent to $1,950 a ton. RSI 42.3.
-- Zinc lost 2 percent at $1,729.75 a ton. RSI 38.7
-- Lead declined 1.4 percent at $1,740 a ton. RSI 44.9
-- Nickel declined 0.2 percent to $19,759 a ton. RSI 43.3.
-- Tin retreated 0.5 percent at $17,651 a ton. RSI 54.3.
Other markets: Last % Change % YTD
U.S. Dollar Index 85.635 -0.1 9.9
Crude oil $76.26 -0.7 -3.8
Gold $1,244.07 -0.1 13.4
MSCI World Index 1,114.84 0.2 -4.6
Economic Events:
Forecast Prior Time
(London)
Italy Industrial Orders April 0.8 1.0% 9:00
U.K. Mortgage Approvals 50K 47K 9:30
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a4pv2UVG6Yvc
$2.9429 - Comex Copper Declines As Recent Support Fades
NEW YORK, Jun 17, 2010 (Dow Jones Commodities News via Comtex) --
By Matt Whittaker
Copper futures are pulling back from the key $3 level as the metal's recent bounce continues to fade.
The most actively traded contract, for September delivery, was recently down 6.55 cents, or 2.2%, at $2.9480 a pound on the Comex division of the New York Mercantile Exchange.
"It's falling away from the pocket of resistance from $3 to $3.02," said Sterling Smith, an analyst with Country Hedging in Inver Grove Heights, Minn. "We're pretty clearly in a bearish phase."
Market participants have been disapointed, he said, with a lack of Chinese buying as traders there return to work. Markets were closed over the past three days for the country's annual Dragon Boat festival.
In the past few sessions, copper prices have recovered from multi-month lows in the $2.70s as sentiment about the global economy has improved, bolstering the demand outlook for the industrial metal.
But that appears to be fading, as the metal has been unable to push much above $3 a pound.
Now, participants are beginning to book profits from the recent gains, Smith said.
In another indication of demand, inventories of copper stored in London Metal Exchange-monitored warehouses rose 1,025 metric tons Thursday, leaving them at 460,175. The most-recent Comex inventory data, released late Wednesday afternoon, were unchanged at 101,925 short tons.
-By Matt Whittaker, Dow Jones Newswires; 212-416-2139; matt.whittaker@dowjones.com
(END) Dow Jones Newswires
06-17-10 0952ET
http://news.tradingcharts.com/futures/9/0/141224309.html
2.9779 - Copper Falters On US Housing Data, Europe Worry
NEW YORK, Jun 16, 2010 (Dow Jones Commodities News via Comtex) --
By Matt Whittaker
Of DOW JONES NEWSWIRES
Weaker-than-expected U.S. housing data and fresh European economic worries are pressuring copper futures Wednesday.
The most-actively traded September contract is down 2.7 cents, or 0.9%, at $2.9970 a pound on the Comex division of the New York Mercantile Exchange.
"The demand picture is not that great," said Dan Cook, Chicago-based senior market analyst with brokerage firm IG Markets, which has its headquarters in London.
Positive economic sentiment is starting to fray following several days of promising data and comments from financial leaders that have sent copper above the psychologically important $3 mark.
It was back below that level Wednesday after U.S. data showed that housing starts dropped 10.0% in May after the government ended a homebuyer tax credit and permits for new construction fell. Economists had expected overall housing starts to drop 5.2%.
The housing market is key to copper demand because the metal is widely used for piping and wiring.
It is also used in automobiles, electronics and appliances. As a result, worries about global economic growth being clipped by European debt problems--particularly in Greece, Spain, Portugal and Hungary--have kept copper market participants wary.
Fresh worries about Spain surfaced after the government denied again that a liquidity package for the country is being prepared by the European Union or International Monetary Fund. That has also pressured the euro and supported the dollar, which in turn weighs on copper prices by making the dollar-denominated metal more expensive for buyers using other currencies.
In another indicator of demand, inventories of copper stored in London Metal Exchange warehouses fell 2,375 metric tons Wednesday, leaving them at 459,150. The most recent Comex inventory data, released late Tuesday afternoon, were unchanged at 101,925 short tons.
-By Matt Whittaker, Dow Jones Newswires; 212-416-2139; matt.whittaker@dowjones.com
(END) Dow Jones Newswires
06-16-10 0917ET
http://news.tradingcharts.com/futures/2/4/141165642.html
Zinc declines, Copper Drops for First Day in Six after
Greece Is Cut to Junk
By Glenys Sim
June 15 (Bloomberg) -- Copper dropped for the first time in six days, snapping its longest rally in more than five months, on concern that Europe’s debt crisis may worsen after Greece’s credit rating was cut to junk. Aluminum and nickel also declined.
Three-month copper on the London Metal Exchange fell as much as 1.2 percent to $6,580 a metric ton and traded at $6,587 at 1:42 p.m. in Singapore. The metal yesterday capped its longest gain since the six-day climb ended Jan. 4, on optimism that China’s demand will rise. September-delivery copper in New York dropped as much as 1 percent to $2.9830 a pound. China’s financial markets are closed today and will reopen on June 17.
“Commodities have been bouncing back quite nicely in the past few days and such events do serve as a reminder to people that things are not back to normal,” Yingxi Yu, an analyst at Barclays Capital, said from Singapore. “Bad headlines coming out every now and then will keep markets nervous.”
Moody’s Investors Service yesterday joined Standard & Poor’s cutting Greece’s credit rating to non-investment grade, or junk. In making the four-step downgrade to Ba1, Moody’s cited “substantial” risks to economic growth from the austerity measures tied to a 110 billion-euro ($134.5 billion) aid package from the European Union and the International Monetary Fund.
“It’s really fears about the future, fears about what the European debt crisis will evolve into,” said Yu. “It’s very unlikely that markets can rebound very strongly.”
Copper’s Performance
Copper, seen by some investors as a gauge of economic activity as it is used in construction and transport industries, has fallen 10 percent this year on concern that Europe’s fiscal crisis, which began in Greece, will hamper global growth.
Concerns that Chinese demand may slow after the government took steps to prevent a property bubble drove the metal to an eight-month low of $6,037.50 a ton on June 7. China has raised minimum mortgage rates, restricted pre-sales by developers and tightened controls on purchases of second and third properties in a bid to curb property speculation.
Metals also dropped today as the dollar rebounded against a six-currency basket including the euro and yen before a German report that economists said will show investor confidence dropped to the lowest level in almost a year. Dollar-denominated commodities tend to move inversely to the U.S. currency.
Among other LME-traded metals, aluminum fell 1 percent to $1,975 a ton, zinc declined 1 percent to $1,779.25 a ton and lead shed 0.8 percent to $1,700.75 a ton. Nickel dropped 2.1 percent to $19,882 a ton and tin climbed 0.2 percent to $16,975 a ton.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aAffXuzdOeVU
$2.9941 - Copper Futures Rise After Euro Zone Output Data
NEW YORK, Jun 14, 2010 (Dow Jones Commodities News via Comtex) --
By Matt Whittaker
Of DOW JONES NEWSWIRES
A stronger euro on the back of surprisingly robust European industrial production is boosting copper futures very close to the key psychological $3 level.
Copper for July delivery was recently up 7.5 cents, or 2.6%, at $2.9790 a pound on the Comex division of the New York Mercantile Exchange.
"The base metals have looked to the dollar for direction, with a recovery in the euro...against the dollar seeing the base metals rally across the board," said Standard Bank analyst Leon Westgate.
Copper often responds positively to gains in economic confidence because it is used throughout the globe in the manufacture of appliances, electronics, automobiles and piping for buildings.
It also tends to gain when the dollar falls because that makes dollar-denominated copper less expensive for buyers using other currencies, which can bump up demand.
In recent activity, the ICE Futures U.S. Dollar Index was down 1% and the euro was up 0.9% on news that industrial production in the 16 countries that use the euro surged in April.
The measure rose 0.8% from March and gained 9.5% from a year earlier, the sharpest year-on-year increase since records began in January 1990. Economists had forecast a 0.5% monthly increase and an 8.7% year-on-year gain.
The figures help to allay some of the fears about European debt that had sent copper prices more than 20% lower since early April.
Participants have been worried that the debt problems--particularly in Greece, Spain, Portugal and Hungary--could spread and derail the worldwide economic recovery, hitting demand for the red metal.
In another indication of demand, inventories of copper stored in London Metal Exchange warehouses fell 1,825 metric tons Monday, leaving them at 463,175. The most recent Comex inventory data, released late Friday afternoon, were unchanged at 102,110 short tons.
-By Matt Whittaker, Dow Jones Newswires; 212-416-2139; matt.whittaker@dowjones.com
(END) Dow Jones Newswires
06-14-10 0918ET
://news.tradingcharts.com/futures/9/1/141062019.html
$2.9035 Comex Copper Steady, Eyes Stocks For Direction
Jun 10, 2010 (Dow Jones Commodities News via Comtex) --
By Allen Sykora
Of DOW JONES NEWSWIRES
Copper futures are hovering around steady levels early Thursday while they wait to see if stock-index futures retain their overnight gains.
Around 9:11 a.m. EDT (1311 GMT), copper for July delivery rose 0.70 cent, or 0.3%, to 2.8570 per pound on the Comex division of the New York Mercantile Exchange.
Benchmark copper lost 26% of its value from the April peak to the early-June low due to worries about European sovereign-debt issues hurting the economy and Chinese efforts to cool its economy. The metal has attempted to stabilize the last two days, however, on improved economic optimism after Federal Reserve Chairman Ben Bernanke said he looks for continued growth this year and next and an unconfirmed news report Wednesday said China's May exports would rise roughly 50%.
So far this morning, copper is hanging onto its gains from Wednesday.
"At the moment, they're steady, sort of watching and waiting to see how equities perform," said Frank Lesh, broker and futures analyst with FuturePath Trading in Chicago.
Stocks are often viewed as a proxy for the economy, he said, and thus potential demand for industrial commodities. The Dow and S&P futures both rose overnight ahead of the open on Wall Street.
China reported its May exports rose 48.5% from a year earlier, reflecting favorably on the economy in the world's largest copper-consuming nation. However, market impact was muted since the result was expected, analysts said.
Meanwhile, Chinese import data released overnight showed that the country's copper demand remains "quite healthy," even if it fell last month, said MF Global analyst Edward Meir. China imported 396,712 metric tons of copper, copper alloy and semifinished products in May, down 9.1% from 436,345 tons the previous month, according to preliminary data provided Thursday by the General Administration of Customs.
Still, said Meir, "this level is still pretty high compared to March and April numbers, which were the second-highest and third-highest on record." Furthermore, copper imports for the year to date so far are up from a year ago.
Nevertheless, Lesh said, worries about future Chinese copper demand have not gone away. Manufacturing activity has been strong so far, he said.
"The concern now is they may back off a little bit," he said.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765; allen.sykora@dowjones.com
(END) Dow Jones Newswires
06-10-10 0925ET
http://news.tradingcharts.com/futures/7/2/140899427.html
Copper 2.8636 - Holds Gains As Equities Rise
Jun 09, 2010 (Dow Jones Commodities News via Comtex) -- 1427 GMT [Dow Jones] -
Comex copper is retaining its overnight gains, helped by a stronger tone in equities, says Scott Meyers, senior trading analyst with the Pioneer Futures division of MF Global in New York. The market gained technical strength it rose above the highs just above $2.80 from the last two days, with July copper peaking at $2.8750. Earlier in the week, the metal hit an eight-month low on global economic worries. "The stock market is holding, and there is a little bottom fishing [in copper]," Meyers says. Meyers puts chart support for July copper around $2.72, the low from Monday. Resistance lies around $2.90. July copper is 7.80 cents higher at $2.8575 a pound. Earlier, analysts linked overnight gains to an apparent leak of Chinese May export data, which were said to be up some 50% from a year ago. (ALS)
Contact us at 541-318-8765 or allen.sykora@dowjones.com
(END) Dow Jones Newswires
06-09-10 1028ET
http://news.tradingcharts.com/futures/6/2/140851926.html
Zinc up, Copper Futures Head for Longest Slump
Since May 2009 on Growth Concerns
By Millie Munshi and Chanyaporn Chanjaroen - Jun 8, 2010
Copper prices fell, heading for the longest slide since May 2009, on increased concern that global growth will slow and commodity demand will decline.
Fitch Ratings said Britain’s deficit challenge is “formidable,” boosting speculation that Europe’s debt crisis is spreading. China and Hong Kong stocks may drop and growth expectations will continue to fall, according to BofA Merrill Lynch Global Research. Before today, copper lost 18 percent this year on demand concern.
“Everyone is worried about the U.K. and just scared to death in general about all the uncertainty for growth,” said Michael K. Smith, the president of T&K Futures & Options in Port St. Lucie, Florida. “Copper will get beat up for the next few weeks.”
Copper futures for July delivery slid 1.4 cents, or 0.5 percent, to $2.752 a pound at 9:41 a.m. on the Comex in New York. A loss today would mean a seven-session slump, the longest since May 15, 2009.
The metal also dropped as the dollar pared earlier declines, curbing demand for commodities as alternative investments. The greenback was little changed against a basket of six currencies, after dropping as much as 0.3 percent.
“Currency volatility today” is driving metals prices, Daniel Major, an analyst at Royal Bank of Scotland Group Plc in London, said by telephone.
Copper for delivery in three months rose $3 to $6,104 a metric ton ($2.78 a pound) on the London Metal Exchange.
Nickel prices dropped. Aluminum, lead, tin and zinc gained.
http://preview.bloomberg.com/news/2010-06-08/copper-falls-for-a-seventh-day-in-london-erasing-gain-as-dollar-rebounds.html
Zinc dips, Copper Falls to Seven-Month Low
as Slowdown May Curb Metals Use
By Claudia Carpenter
June 7 (Bloomberg) -- Copper fell to a seven-month low in New York and London as slowing economic growth may curb demand for industrial metals used in cars and homes. Nickel rebounded.
The MSCI World Index of shares dropped for a second day after Group of 20 finance chiefs meeting in Busan, South Korea, over the weekend said the global rebound faces “significant challenges.” Copper futures have declined 17 percent this year.
“The pace of the global economic recovery is slowing,” said Eliane Tanner, an analyst at Credit Suisse Group AG in Zurich. “Sentiment in the base metals sector is quite negative due to lower equity markets.”
Copper for July delivery declined 3.8 cents, or 1.3 percent, to $2.7815 a pound at 8:53 a.m. on the Comex in New York. Prices earlier dropped to $2.734, the lowest level for a most-active contract since Oct. 6. In London, copper for three- month delivery fell 1.4 percent to $6,191.25 a metric ton ($2.81 a pound).
Nickel erased a decline, and its gain accelerated after German factory orders unexpectedly jumped for a second month in April as the weaker euro boosted export demand and companies increased investment.
Orders rose 2.8 percent from March, when they surged 5.1 percent, the Economy Ministry in Berlin said today. Economists had forecast a 0.4 percent drop. The dollar was little changed against the euro today.
Employment Report
Industrial metals as measured by the LME index dropped 11 percent last week, the most since December 2008, after the June 4 jobs report that showed U.S. private-sector employers added 41,000 jobs to their payrolls in May, down from 218,000 in April.
The U.S. economy may be headed for a slowdown reminiscent of the one it suffered in 2002 as the sovereign-debt crisis in Europe, fading government support and persistently high joblessness weigh on expansion in the second half of the year.
Aluminum was little changed at $1,879.50 a ton, zinc fell 0.4 percent to $1,633.75 a ton and lead decreased 1 percent to $1,591.25 a ton. Tin was little changed at $16,027 a ton and nickel climbed 1.4 percent to $18,200 a ton.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aPFJ0M58jt5M
Comex Copper Softer On Chinese Concerns
Jun 03, 2010 (Dow Jones Commodities News via Comtex) -- By Allen Sykora
Copper futures are under modest pressure Thursday on continuing worries about potential for Chinese demand to abate, but the metal could well recover if equities maintain their recent strength.
Around 9:44 a.m. EDT (1344 GMT), copper for July delivery fell 3.95 cents, or 1.3%, to $3.0010 per pound on the Comex division of the New York Mercantile Exchange.
"There seems to be a lot of talk about China slowing down," said Frank Lesh, broker and futures analyst with FuturePath Trading in Chicago. "That's one of the problems at the moment."
The market is mindful that Chinese authorities have taken steps so far this year to cool the economy and real-estate sector in particular. Also, the Purchasing Managers Index for China's manufacturing sector fell earlier this week. The country is especially important to the copper market since it is the world's largest consumer of the metal.
Also, whereas the dollar index is flat so far this morning, recent strength amid euro-zone debt worries still could be holding copper back, Lesh said. A muscular U.S. currency hurts copper by making it more expensive for holders of other currencies.
Otherwise, traders suggest that sentiment in other markets should be favorable to copper. One New York trader cited stronger equities a day after the Dow Jones Industrial Average posted a solid advance.
This, coupled with a stabilizing euro, could enable base metals to eventually "regroup," said MF Global analyst Edward Meir in New York.
"We suspect that with the short-term pendulum now swinging upwards, metals should follow, the current disconnect notwithstanding," Meir said.
Lesh put initial chart support for July copper around $2.95 to $2.92 a pound, then $2.88 to $2.85. He pegged resistance around $3.10 to $3.15.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765; allen.sykora@dowjones.com
(END) Dow Jones Newswires
06-03-10 0952ET
http://news.tradingcharts.com/futures/4/1/140583114.html
NY Copper Falls Under $3 Amid Pall Over Growth
NEW YORK, Jun 02, 2010 (Dow Jones Commodities News via Comtex) --
By Matt Whittaker
Of DOW JONES NEWSWIRES
Copper futures are back below $3 as gloom persists about global economic recovery.
The most-actively traded contract, for July delivery, was recently down 8 cents, or 2.6%, at $2.9830 a pound on the Comex division of the New York Mercantile Exchange.
Copper--widely used in manufacturing and construction and considered an economic indicator--has been under pressure since hitting 20-month highs above $3.60 in early April. Behind the pressure are concerns that spiraling European sovereign debt problems could hamper the global economic recovery.
It's bounce after dipping to the $2.90s last month now appears to be fading as sentiment sours while euro-zone worries continue and concerns emerge about demand from China, the world's largest copper consumer.
Data Tuesday showed slowing growth in factory activity in the Asian nation.
"The market is resuming its downtrend," said John Gross, independent metals-industry consultant based in Exeter, R.I.
In another indicator of demand, inventories of copper stored in London Metal Exchange warehouses fell 350 metric tons Wednesday, leaving them at 475,225 tons. The most recent Comex inventory data, released late Tuesday afternoon, were up 137 short tons at 101,928 short tons.
-By Matt Whittaker, Dow Jones Newswires; 212-416-2139; matt.whittaker@dowjones.com
(END) Dow Jones Newswires
06-02-10 0919ET
http://news.tradingcharts.com/futures/2/8/140525582.html
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