* Greek strike, U.S. fiscal cliff keep lid on prices
* China spot copper demand still sluggish
* Bonded warehouses copper stocks at 750,000 T- Macquarie
LONDON, Nov 6 (Reuters) - Copper rose slightly on Tuesday, recovering from a two-month low hit the previous session, as the lower price triggered new buying, but gains were capped by uncertainty ahead of the presidential election in the United States. Benchmark London Metal Exchange copper closed at $7,700 a tonne from a close of $7,650 on Monday, when the metal hit a two-month low at $7,596. World stock markets rose on Tuesday as American voters went to the polls, with the tightly fought U.S. presidential election keeping trade subdued, while the euro held steady despite uncertainty over Greece's next financial aid payment. A leadership transition in China and strikes in Greece over a new austerity package also kept sentiment in check. Lending a little support to metals prices, data on Monday showed that the HSBC Purchasing Managers Index for China's services sector slipped in October from September's four-month high but remained above the 50-point level that indicates accelerating growth. ``We had the China PMI back slightly above 50 level and that, in combination with an oversold market and some position squaring ahead of the U.S. election, caused a bit of a push higher. How long it will be sustained for it's difficult to say,'' Societe Generale analyst Robin Bhar said. Copper prices rallied nearly 8 percent in September, fuelled by a third round of quantitative easing (QE) by the U.S. Federal Reserve, the promise of bond buying by the European Central Bank (ECB) and stimulus measures in Japan and China. The metal then lost more than 5 percent in October as expectations that real demand would improve failed to materialise. It is now trading up just 1 percent in the year to date.
LOW DEMAND, HIGH STOCKS Spot copper prices in China traded at a discount to the Shanghai Futures Exchange front-month futures prices, indicating slow restocking by the world's top consumer. Most of China's copper inventories are in bonded warehouses, estimated to hold around 750,000 tonnes as compared with over 300,000 tonnes at the end of 2011, but Beijing is expected to stimulate China's economy through infrastructure investments. The country is expected to soon resume stockpiling of some base metals, including copper and aluminium, buying them from domestic smelters hurt by weak demand. Three-month aluminium, untraded at the close, was bid at $1,920 tonne from $1,906 at the close on Monday. Three-month nickel closed at $16,075 from $15,900, zinc at $1,899 from $1,869, tin at $20,625 from $20,100 and lead at $2,165 from $2,127.
Metal Prices at 1717 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T
Metal Last Change Pct Move End 2011 Ytd Pct
COMEX Cu 350.65 3.65 +1.05 344.75 1.71 LME Alum 1922.00 16.00 +0.84 2020.00 -4.85 LME Cu 7722.25 72.25 +0.94 7600.00 1.61 LME Lead 2174.25 47.25 +2.22 2034.00 6.90 LME Nickel 16094.00 194.00 +1.22 18650.00 -13.71 LME Tin 20652.00 552.00 +2.75 19200.00 7.56 LME Zinc 1900.75 31.75 +1.70 1845.00 3.02 SHFE Alu 15300.00 10.00 +0.07 15845.00 -3.44 SHFE Cu* 56050.00 230.00 +0.41 55360.00 1.25 SHFE Zin 14830.00 100.00 +0.68 14795.00 0.24 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07