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METALS-Copper steady, but vulnerable ahead of U.S. jobs report

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Published: Friday, 5 Apr 2013 | 6:59 AM ET
By: Susan Thomas

* Copper near 8-month lows

* Chinese markets shut for a 2nd day of holidays

* Coming Up; U.S. nonfarm payrolls USNFAR=ECI at 1230 GMT

LONDON, April 5 (Reuters) - Copper was steady on Friday, hovering around the eight-month lows it hit on Thursday, but remained vulnerable to further declines with the release of U.S. payroll figures later in the day. A two-day holiday in top copper consumer China has also dampened demand for the metal. Three-month copper on the London Metal Exchange was $7,439 from $7,440 at the close on Thursday, when it hit its lowest since Aug. 3 at $7,331.25 a tonne. Prices were down more than 6 percent for the year. A sell-off that began in mid-February has continued into early April, with the majority of the complex now trading at multi-month lows, Barclays Capital said in a research note. "Neither macro nor fundamental trends have offered any persuasive reasons to counteract this price trend during this time period," it said. Concerns have been growing about the outlook for the U.S. economic recovery ahead of the key non-farm payrolls report, due at 1230 GMT, after weaker-than-expected data this week on manufacturing activity and private sector hiring. The jobs numbers are expected to show that employers added 200,000 jobs last month, below the 236,000 created in February, leaving the unemployment rate steady at 7.7 percent, according to a Reuters poll of economists A better-than-expected number could be a double-edged sword for metals, because while it would signal good prospects for the economy and therefore demand for industrial materials, it would also push up the dollar. A stronger dollar makes metals more expensive for holders of other currencies. Analysts expect copper prices to start picking up in the current quarter, which is seasonally the strongest. "As the second quarter gets underway, we should see prices start rallying. I think we will get back on track again, and we're staying faithful to the expectation that we will get a seasonal uptick," Societe Generale analyst Robin Bhar said. Chinese demand has been recovering, but traders were reluctant to take positions, at least until Monday when Chinese financial markets reopen, . Tin was at $22,800 from $22,750, while zinc was at $1,891 from $1,889. Lead was at $2,076 from $2,075, and aluminium was at $1,881 from $1,885. Nickel was at $16,092 from $16,100.

Metal Prices at 1139 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

move

COMEX Cu 335.50 0.35 +0.10 365.25 -8.15 LME Alum 1881.00 -4.00 -0.21 2073.00 -9.26 LME Cu 7440.25 0.25 +0.00 7931.00 -6.19 LME Lead 2075.25 0.25 +0.01 2330.00 -10.93 LME Nickel 16092.00 -8.00 -0.05 17060.00 -5.67 LME Tin 22750.00 50.00 +0.22 23400.00 -2.78 LME Zinc 1890.50 33.50 +1.80 2080.00 -9.11 SHFE Alu 14565.00 -5.00 -0.03 15435.00 -5.64 SHFE Cu* 54070.00 -270.00 -0.50 57690.00 -6.27 SHFE Zin 14520.00 -145.00 -0.99 15625.00 -7.07 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN

SHFE ZN began trading on 26/3/07

 Print
*Copper near 8- month lows. LONDON, April 5- Copper was steady on Friday, hovering around the eight-month lows it hit on Thursday, but remained vulnerable to further declines with the release of U.S. payroll figures later in the day.

   
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