Go Symbol Lookup
Loading...

Dow Skids 200, Stocks End Down 1% as Fed Hints at Stimulus Slowdown

METALS-Copper climbs after brightening China trade data

 Text Size  
Published: Wednesday, 9 Jan 2013 | 9:44 PM ET
By: Reuters in October. <MKTBAL-NTZ>

* Tin prices steady from 11-month high on momentum buying, supply constraints

* China exports grew 14.1 percent in December

* Coming Up; ECB Rate Decision at 1245 GMT

(Adds comment, detail, updates prices) MELBOURNE, Jan 10 (Reuters) - London copper crawled higher on Thursday, boosted by Chinese trade data that showed exports recovered in December but expectations of lower copper imports due to ample stockpiles in the world's top metals consumer helped put a lid on prices. China's exports grew 14.1 percent in December from a year ago to hit a seven-month peak, data showed on Thursday, rebounding from three-month lows and racing past market expectations for a 4 percent rise. China is the world's biggest copper consumer, accounting for 40 percent of refined demand this year. "The growth pick up in China is not really strong. GDP growth momentum on a yearly basis may rise 0.4 percent...from 7.6 to 8 percent and that is probably not sufficient to trigger a meaningful rally (in copper)," said Dominic Schnider, head of commodity research at UBS Wealth Management. "It really starts in the second quarter then copper has the potential for a top side of around $8,600-$8,800," Schnider said, adding that improving mine supply will temper copper prices in the second half of the year. UBS expects global copper production to rise by 6 percent this year. China's imports of copper likely fell in December as year-end demand dwindled while local output stayed strong.

Three-month copper on the London Metal Exchange was steady at $8,090 a tonne by 0214 GMT, paring early losses to rise 0.12 percent from the previous session, when it finished unchanged. Prices have built a base above the $8,000 mark this year, but have struggled to find traction since hitting a two-and-a half-month high of $8,256.50 a tonne on Jan. 3, the loftiest since Oct. 18. The most traded April copper contract on the Shanghai Futures Exchange rose by 0.19 percent to 58,450 yuan ($9,400) a tonne. Reflecting moderating risk appetite, Asian shares steadied on Thursday following an overnight rise in global equities on early optimism about U.S. earnings, but investors remained cautious ahead of China's trade data and the European Central Bank meeting later in the day. The European Central Bank is expected to keep interest rates at a record low of 0.75 percent on Thursday, refraining from a cut as the euro zone economy shows some signs of stabilising and inflation still tops its target.

TIN HIGH Tin prices hit the highest in 11 months at $24,650 a tonne on Wednesday, boosted by technical momentum and expectations of supply constraints from top exporter Indonesia, traders said. Potentially crimping global supply, Indonesia will increase its minimum purity requirements for tin ingot exports next year, a trade ministry official said in December. The global tin market was seen in a 4000 tonne deficit by the end of this year, according to a poll of 9 analysts compiled

PRICES

Base metals prices at 0214 GMT

Metal Last Change Pct Move YTD pct chg LME Cu 8090.00 10.00 +0.12 2.03 SHFE CU FUT APR3 58450 110 +0.19 1.33 HG COPPER MAR3 368.25 1.20 +0.33 0.82 LME Alum 2084.00 4.00 +0.19 0.63 SHFE AL FUT MAR3 15255 10 +0.07 -0.59 LME Zinc 2026.25 9.25 +0.46 -1.81 SHFE ZN FUT APR3 15460 -85 -0.55 -0.55 LME Nickel 17589.00 69.00 +0.39 2.53 LME Lead 2326.00 11.00 +0.48 -0.60 SHFE PB FUT 15160.00 35.00 +0.23 -0.59 LME Tin 24500.00 -150.00 -0.61 4.70 LME/Shanghai arb^ 638

Shanghai and COMEX contracts show most active months ($1 = 6.2262 Chinese yuan)

(Reporting by Melanie Burton; Editing by Muralikumar Anantharaman and Miral Fahmy)

 Print
*China exports grew 14.1 percent in December. China's exports grew 14.1 percent in December from a year ago to hit a seven-month peak, data showed on Thursday, rebounding from three-month lows and racing past market expectations for a 4 percent rise. China is the world's biggest copper consumer, accounting for 40 percent of refined demand this year. "

   
Comments

 

More Comments

 
 

Add Comments

 

Your Comments (Up to 1100 characters):

Remaining characters

Your comments have not been posted yet.

Please review your submission to make sure you are comfortable with your entry.

Your Comments: