RTRS:METALS-LME copper steadies, but eyeing 4th weekly loss
* LME copper bearish target at $7,010 intact-technicals
* Global economic woes, euro zone debt crisis weigh
(Adds comments, updates prices)
By Manolo Serapio Jr
SINGAPORE, Nov 25 (Reuters) - London copper steadied
on Friday but is on track for a fourth straight week of decline
as a struggling global economy and a deepening euro zone debt
crisis kept investors' hands off riskier assets.
Down about 9 percent so far in November, copper is heading
for its third loss in four months as investors are unsure about
the outlook for demand with Europe mired in a crippling
sovereign debt crisis, the U.S. economy underperforming and top
copper consumer China's manufacturing sector slowing down.
"Unless we have news that provides a level of optimism,
copper prices should remain under pressure. At the moment, it's
just curve ball after curve ball after curve ball," said
Jonathan Barratt, managing director at Commodity Broking
Services in Sydney.
Three-month copper on the London Metal Exchange
eased 0.2 percent to $7,254.25 a tonne by 0358 GMT. For the
week, LME copper is down 3.5 percent, having fallen to a
one-month low of $7,100.25 on Thursday.
The most-traded February copper contract on the Shanghai
Futures Exchange dropped 0.8 percent to 54,030 yuan a
tonne, on track for a third consecutive week of decline.
Asian shares and the euro fell to seven-week lows on Friday
as European officials failed to soothe investor fears that the
euro zone's debt crisis could trigger a credit crunch if funding
costs run out of control.
France and Germany agreed on Thursday to stop arguing in
public over whether the European Central Bank should do more to
rescue the euro zone from a deepening sovereign debt crisis.
While the troubled euro zone is at the core of investor
concerns, economic data elsewhere was also uninspiring,
including preliminary numbers on Wednesday that showed China's
factory sector shrinking the most in 32 months in November.
But some analysts thought the weak manufacturing data may
eventually spur Beijing to loosen monetary policy, a move that
would support demand for commodities like copper.
China could cut reserve requirements for all banks in the
first three months of 2012, said Huang Jifa, deputy head of
investment banking at Industrial and Commercial Bank of China
Ltd (ICBC) .
The current price levels of copper may draw Chinese buyers,
said Bonnie Liu, analyst at Macquarie Bank in Shanghai.
"I see good level of buying from China at
$7,200-$7,300 level and I see more money available as well,"
said Liu.
Metals trading is expected to be subdued later on Friday
with an abbreviated U.S. session following Thursday's
Thanksgiving holiday.
Base metals prices at 0358 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7254.25 -10.75 -0.15 -24.43
SHFE CU FUT FEB2 54030 -410 -0.75 -24.80
LME Alum 2030.00 11.50 +0.57 -17.81
SHFE AL FUT FEB2 15845 -35 -0.22 -5.91
HG COPPER DEC1 327.85 -0.10 -0.02 -26.15
LME Zinc 1897.00 9.00 +0.48 -22.70
SHFE ZN FUT MAR2 14910 -120 -0.80 -23.44
LME Nickel 17150.00 75.00 +0.44 -30.71
LME Lead 1995.00 3.00 +0.15 -21.76
SHFE PB FUT 15220 -30 -0.20 -17.06
LME Tin 20180.00 -170.00 -0.84 -24.98
LME/Shanghai arb 22
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
