RTRS:METALS-London copper down on euro zone spat over ECB's role
* Copper down 0.6 pct on LME; up 1.2 pct on ShFE
* France, Germany clash over extent of ECB's intervention
* France headed for slowdown not recession -FinMin
* China's FDI up, but export outlook grim on euro zone debts
* Coming Up: U.S. USDA export sales weekly 1330 GMT
(Updates prices, adds quotes, details)
By Carrie Ho
SHANGHAI, Nov 17 (Reuters) - London copper fell on
Thursday after France and Germany clashed over the European
Central Bank's (ECB) role in handling the euro zone debt crisis,
stirring doubt about the region's ability to solve its problems.
Three-month copper on the London Metal Exchange fell
0.6 percent to $7,683.25 a tonne by 0356 GMT, after rising 0.6
percent previously.
France and Germany, Europe's two key powers, disagreed over
whether the ECB should intervene more forcefully to halt the
euro zone's accelerating debt crisis after modest bond purchases
failed to calm markets.
The most-active February copper contract on the Shanghai
Futures Exchange rose 1.2 percent to 56,980 yuan
($8,979.45) per tonne, after falling 2 percent on Wednesday.
"Trading has been directionless over the past few days as
investors wrestle with mixed news in the media. The euro zone
continues to worry and China is still wrestling with tight
credit, while the U.S. economy seems to be stablising," said
Great Wall Futures analyst Li Rong.
"Copper price movements on the LME and ShFE today are also
adjustments after yesterday's movements. London copper rose
after ShFE closed yesterday and is moving down in compensation.
Shanghai copper's current rally is a technical rebound within a
bear market, where there are more downside risks," Li added.
Finance Minister Francois Baroin said on Wednesday that
France was headed for a slowdown, not a recession, and the
government was doing everything to preserve its AAA credit
rating, though he ruled out further austerity measures.
Thousands will protest in Athens on Thursday to warn Lucas
Papademos' new government that despite parliament's backing for
more austerity steps, many ordinary Greeks are not ready to
endure further years of painful belt-tightening.
In China, foreign direct investment (FDI) climbed nearly 16
percent in the first 10 months of 2011 from a year earlier, but
Beijing warned of a possible grim export outlook due to Europe's
debt problems.
Adding to investor caution, BHP Billiton, the
world's biggest miner, has turned more wary on the outlook for
commodity markets, warning on Thursday that customers are
starting to face tighter access to trade finance and some are
cutting production.
In Indonesia, union workers at Freeport-McMoRan Copper &
Gold Inc's Grasberg copper mine, who have been on strike
since mid-September, are sticking to pay demands for $7.50 an
hour, a wage request deemed "excessive" by the U.S. miner's
chief executive.
Base metals prices at 0356 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7683.25 -46.75 -0.60 -19.97
SHFE CU FUT FEB2 56980 650 +1.15 -20.70
LME Alum 2147.25 -9.75 -0.45 -13.07
SHFE AL FUT JAN2 16135 35 +0.22 -4.19
HG COPPER DEC1 347.20 -1.25 -0.36 -21.79
LME Zinc 1946.00 -14.00 -0.71 -20.70
SHFE ZN FUT JAN2 15250 130 +0.86 -21.69
LME Nickel 18100.00 -40.00 -0.22 -26.87
LME Lead 2011.00 -19.00 -0.94 -21.14
SHFE PB FUT 15375 145 +0.95 -16.21
LME Tin 21700.00 0.00 +0.00 -19.33
LME/Shanghai arb 106
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
third month
($1 = 6.346 Chinese Yuan)
(Reporting by Carrie Ho; Editing by Clarence Fernandez)