RTRS:METALS-Shanghai copper, zinc fall on Europe debt fears
* Shanghai copper heads for longest losing streak in more
than 2 years
* London copper slips, extending loss after worst drop since
October
* Japan's tankan survey, China's flash PMI show
deteriorating demand
(Updates prices)
By Jane Lee
KUALA LUMPUR, Dec 15 (Reuters) - Copper prices in
Shanghai fell for a sixth day on Thursday, tracking losses in
commodities overnight, after Japan's business sentiment worsened
and a survey showed China's factory output contracted, deepening
fears about the euro zone debt crisis.
The most-traded February copper contract on the Shanghai
Futures Exchange dropped 4.04 percent to 53,460 yuan
($8,400) a tonne at 0701 GMT, off an earlier three-week low of
52,820 yuan. Futures are set for their longest losing streak in
more than two years, and have lost 26 percent this year.
Three-month copper on the London Metal Exchange
slipped 0.12 percent to $7,201.50 a tonne, after prices tumbled
more than 5 percent overnight.
The decline on Wednesday was the biggest since Oct. 20.
Prices have dropped almost 30 percent from a peak of $10,190
reached in February.
"Markets are frustrated and disappointed, waiting for a road
map on the resolution of the two-year-old debt crisis," said Ong
Yi Ling, an investment analyst at Phillip Futures in Singapore.
"Risk assets are all down. The debt crisis will be with us
at least through the first half of 2012."
Adding to the gloomy outlook was Japan's business sentiment
index, which worsened in the three months to December, the
central bank's tankan survey showed, as a stubbornly strong yen,
Europe's debt crisis and slowing global growth clouded the
country's recovery prospects.
China's factory output shrank again in December after new
orders fell, a preliminary purchasing managers' survey showed,
entrenching expectations that manufacturers are struggling with
waning global demand and tight domestic credit conditions.
Fears that Europe's troubles are worsening were fanned by
rising borrowing costs for Italy and German Chancellor Angela
Merkel saying the region should not be counting on European
Central Bank intervention to resolve its debt crisis.
Italy paid a record 6.47 percent for five-year bonds in an
auction on Wednesday as investors fled to less-risky assets such
as U.S. and German government bonds.
The most-active March zinc in Shanghai lost 1.7
percent to 14,715 yuan a tonne.
Base metals prices at 0701 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7201.50 -8.50 -0.12 -24.98
SHFE CU FUT FEB2 53460 -2250 -4.04 -25.59
LME Alum 1979.00 17.00 +0.87 -19.88
SHFE AL FUT MAR2 15645 -190 -1.20 -7.10
HG COPPER MAR2 326.20 -1.65 -0.50 -26.52
LME Zinc 1861.00 16.00 +0.87 -24.16
SHFE ZN FUT MAR2 14715 -255 -1.70 -24.44
LME Nickel 17417.00 17.00 +0.10 -29.63
LME Lead 1985.50 -12.50 -0.63 -22.14
SHFE PB FUT 15050 -270 -1.76 -17.98
LME Tin 18700.00 175.00 +0.94 -30.48
LME/Shanghai arb 240
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
($1 = 6.3706 Chinese yuan)
