METALS-Copper rises as dollar falls, China holiday subdues trade
* ShFE markets shut this week for Lunar New Year
* LME volumes thin due to the holiday
* Euro rises as dollar falls after G7 statement
LONDON/SINGAPORE, Feb 12 (Reuters) - Copper rose on Tuesday, propped up by a softer dollar, although traders were reluctant to take big positions due to a week-long holiday in top consumer China. Metals have been bolstered by the prospect of renewed buying by Chinese industrial customers after the Lunar New Year holiday. But markets were quiet, with turnover of around 2,261 lots for benchmark three-month copper, which was up 0.2 percent at $8,213 per tonne from a last bid of $8,199 on Monday. "With a lot of Asia being on holiday it's pretty subdued activity we're seeing, and we're all waiting to see what happens next week when China comes back," said Standard Chartered analyst Dan Smith. The Shanghai Futures Exchange is closed all week, while markets in Hong Kong and Singapore will reopen tomorrow. "We've been recommending people to sell into the rallies on copper which I think is still the right thing to be thinking about because from a technical perspective we're run up close to the highs," Smith said. Copper last week rallied to its highest in four months at $8,346 a tonne. Although gains have petered off, prices are still up more than 3 percent so far this year. The euro rose, as the dollar fell against a basket of currencies, after the G7 nations urged countries to refrain from competitive devaluations. A weaker dollar makes metals cheaper for holders of other currencies. Financial markets showed a muted reaction, meanwhile, to the news that North Korea has conducted a nuclear test. Investors are also waiting for key events such as the U.S. president's State of the Union address later in the day. China's exports and imports surged and new lending soared in January as the first hard data of the year released last week signalled not only a solid recovery in domestic and overseas demand, but also the risk that inflationary pressures are building. Brightening the picture for Chinese demand has been a revival in its top export markets, the United States and Europe. Moody's Investor Services on Tuesday said downside risks for the global economy had receded in the past three months, though a number of dangers still remained.
INDONESIA TIN SHIPMENTS TO FALL An increase in January tin exports from Indonesia was driven by higher LME prices but shipments are expected to fall over the coming months as new purity standards are introduced and smelters upgrade ahead of a change of regulation, broker Triland said in a note. Refined tin shipments from Indonesia, the world's top exporter, rose 5.4 percent in January to 9,154.71 tonnes from 8,689.20 tonnes in December.
The country will increase its minimum purity requirements for tin ingot exports from July this year as it seeks to bolster its domestic processing industries. Three-month tin was up 0.4 percent at $24,950 from a last bid of $24,850 on Monday, while zinc was at $2,188 from $2,192 at the close. Lead was at $2,384 from $2,388 and aluminium was at $2,101 from $2,103. Nickel was at $18,285 from $18,175.
Metal Prices at 1147 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T
Metal Last Change Pct Move End 2012 Ytd Pct
COMEX Cu 373.10 0.85 +0.23 365.25 2.15 LME Alum 2101.75 -1.25 -0.06 2073.00 1.39 LME Cu 8213.50 -81.50 -0.98 7931.00 3.56 LME Lead 2384.50 -3.50 -0.15 2330.00 2.34 LME Nickel 18279.00 104.00 +0.57 17060.00 7.15 LME Tin 24901.00 51.00 +0.21 23400.00 6.41 LME Zinc 2191.00 -1.00 -0.05 2080.00 5.34 SHFE Alu 15140.00 50.00 +0.33 15435.00 -1.91 SHFE Cu* 59480.00 120.00 +0.20 57690.00 3.10 SHFE Zin 15780.00 20.00 +0.13 15625.00 0.99 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07