METALS-Copper dips after 5-day rise; ECB, U.S. in focus
* Traders eye U.S. jobs report, China industrial output this week
* U.S. "fiscal cliff" negotiations worry
* Coming up: ECB rate decision at 1245 GMT
LONDON, Dec 6 (Reuters) - Copper dipped on Thursday as the euro fell against the dollar ahead of a European Central Bank rate decision and investors remained uneasy about progress in talks in the United States to avoid the "fiscal cliff" of spending cuts and tax rises. The ECB is expected to keep its benchmark rate at 0.75 percent but will probably slash its growth outlook for 2013. Any hint of further rate cuts could see the euro give up some of its recent gains against the dollar. A stronger dollar makes metals more expensive for holders of other currencies. "There hasn't been any sort of major commodities specific news out this morning, so in that sense the market is lacking any direction ahead of the ECB and Bank of England meetings," Danske Bank analyst Christin Tuxen said. "Base metals markets will be looking towards the non-farm payrolls tomorrow, that is going to be instrumental in showing how the labour market is doing in the United States, and that is important for the economy in general." Three-month copper on the London Metal Exchange was down 0.1 percent at $8,065 a tonne by 1112 GMT, reversing gains from the previous session when it hit its highest since Oct. 19. It closed at $8,065.25 on Wednesday. Copper prices have increased for the past five sessions to peak at $8,095.75, adding to a rise off two-and-a-half month lows reached on Nov 9. Prices are up 6 percent so far this year. "We will continue to watch the Shanghai Composite Index and news regarding the fiscal cliff as leading indicators for copper prices and whether the current rally can be sustained," RBC said in a research note. Republicans in Congress and President Barack Obama consumed much of Wednesday talking up their positions on the "fiscal cliff" and though Obama and Republican House Speaker John Boehner spoke by phone, neither side offered any new compromises in public. Metals prices have also firmed on signs demand is improving in top consumer China, despite record stockpiles. China's large copper smelters are offering 2013 exports of copper at cheaper premiums as they compete with major suppliers such as top world producer Codelco, boosting supply in Asia, the smelters said on Thursday. Annual growth in China's factory output, investment and retail sales may have gained pace in November thanks to recent pro-growth policies, a Reuters poll showed, reducing the chances for further policy support as inflation picks up. In other metals, tin was at $21,848 from $21,745 at Wednesday's close, while zinc was at $2,037 f rom $2,027. Lead was at $2,236 from $2,239 and aluminium was at $2,109 from $2,105. N ickel was at $17,609 from $17,550.
Metal Prices at 1124 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
move
COMEX Cu 366.40 -1.10 -0.30 344.75 6.28 LME Alum 2108.50 3.50 +0.17 2020.00 4.38 LME Cu 8062.25 -12.75 -0.16 7600.00 6.08 LME Lead 2236.25 -2.75 -0.12 2034.00 9.94 LME Nickel 17598.00 48.00 +0.27 18650.00 -5.64 LME Tin 21820.00 75.00 +0.34 19200.00 13.65 LME Zinc 2035.50 8.50 +0.42 1845.00 10.33 SHFE Alu 15330.00 -70.00 -0.45 15845.00 -3.25 SHFE Cu* 57340.00 -390.00 -0.68 55360.00 3.58 SHFE Zin 15285.00 -65.00 -0.42 14795.00 3.31 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07