RTRS: METALS-Copper lifted by dollar weakness; $8,000 eyed
* Weak dollar supports after Singapore move
GLOBAL MARKETS | FUNDS NEWS | ETFS NEWS
* Battery material lead falls due to seasonal weakness
* Chinese monetary tightening still a worry
(Updates prices and comments)
By Michael Taylor
LONDON, April 14 (Reuters) - Copper rose towards the psychological $8,000 level on Wednesday as the dollar fell, pressed by Singapore effectively revaluing its currency, while positive earnings were also seen as supportive to base metals.
Official growth data from China, the world's top metals consumer, is due on Thursday but a further sentiment boost came as sources said earlier the country's economy grew about 11.9 percent in the first quarter, topping expectations. [nTOE63D08S]
Copper for three-months delivery CMCU3 on the London Metal Exchange traded at $7,965 a tonne in the open outcry trade from $7,900 at the close on Tuesday, off the session high at $7,983.
Used in power and construction, copper gained 140 percent last year and is up about 8 percent so far this year, driven by Chinese and fund buying, improving macro data and a weaker dollar.
The dollar eased after Singapore effectively revalued its currency, making metals priced in the U.S. currency less expensive for holders of other currencies.
The U.S. currency briefly extended gains to a session peak against the yen but the dollar index .DXY was still down 0.2 percent on the day. [FRX/]
"As the dollar weakens, it will give support," said Robin Bhar, an analyst at Credit Agricole Corporate & Investment Bank.
"People may be jockeying for position -- waiting for the GDP data coming out of China on Thursday -- which will be very strong and could re-awaken thoughts about more tightening to come from the government." [ID:nSGE6380C6]
Positive news on the macroeconomic and company results front also offered support for sentiment. JPMorgan Chase & Co's (JPM.N) first-quarter profit topped Wall Street expectations, as revenue from its investment bank overshadowed losses on consumer loans. [ID:nN14132602]
Sales at U.S. retailers rose more strongly than expected in March as consumers stepped up purchases of vehicles and and wide range of goods, government data showed on Wednesday, suggesting a broadening of the manufacturing-led economic recovery. [ID:nN1395557]
From a technical perspective, copper seen to be stuck in a range but may break to the upside, while the wave count on the charts favours a possible start of a fifth wave rally. [TECH/C] <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
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"With many metals now at new highs, there is certainly a positive feel about the place," said one LME trader. "As long as the fund money keeps flowing, then it can only remain at these levels."
WARHOUSE MOVES WATCHED
Often a demand indicator, copper stocks in LME warehouses fell 975 tonnes to 509,650 tonnes, down from six and half year highs at 555,075 on Feb. 17. <0#LME-STOCKS>
Aluminium CMAL3 traded at $2,455 versus $2,436 and earlier touched its highest level since September 2008 at $2,462.
Earlier this week, Russia's UC RUSAL (0486.HK) (RUAL.PA), the world's biggest aluminium producer, said it is considering launching an aluminium exchange traded fund (ETF), that could lock up more than 1 million tonnes of the metal. [ID:nTOE63B079] "Rusal has indicated that it is preparing to launch aluminum ETF backed by 1mt of physical metal," said investment bank Fairfax in a note. "Creation of such a fund should raise investment demand for the metal and could support prices."
Among other metals, steel ingredient nickel CMNI3 traded at $25,875 from $25,525 and earlier hit $25,990, its highest since May 2008. While battery material lead CMPB3 was at $2,355/2,358 from $2,370.
Lead LME inventories jumped 6,850 tonnes to 180,425 tonnes -- its highest level since April 2003.
"Whereas Q2 will be strong for all metals, it will be particularly weak for lead by comparison," said Credit Agricole's Bhar. "We are in a seasonally weaker period, between winter and hotter summer months."
Minmetals is conducting a review that could lead to a restart of Australia's Avebury nickel mine, MMG, Minmetals' Australian subsidiary said. The mine was idled in 2008 due to low nickel prices. [ID:nSYU009719]
Zinc CMZN3 was untraded at the rings but was last quoted at $2,415/2,417 a tonne from $2,390 and tin CMSN3 was at $18,700/18,725 from $18,610.
Metal Prices at 1316 GMT Metal Last Change Pct Move End 2009 Ytd Pct
move COMEX Cu 360.70 1.15 +0.32 332.75 8.40 LME Alum 2445.00 9.00 +0.37 2230.00 9.64 LME Cu 7955.00 55.00 +0.70 7375.00 7.86 LME Lead 2340.00 -30.00 -1.27 2432.00 -3.78 LME Nickel 25885.00 360.00 +1.41 18525.00 39.73 LME Tin 18700.00 90.00 +0.48 16950.00 10.32 LME Zinc 2424.00 34.00 +1.42 2560.00 -5.31 SHFE Alu 16915.00 70.00 +0.42 17160.00 -1.43 SHFE Cu* 62160.00 30.00 +0.05 59900.00 3.77 SHFE Zin 19220.00 75.00 +0.39 21195.00 -9.32 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07
