RTRS:METALS-Copper rebounds on signs of U.S. economic recovery
* U.S. data point to signs of economic recovery
* Freeport's Grasberg mine to resume output early-2012
(Updates prices)
By Jane Lee
KUALA LUMPUR, Dec 16 (Reuters) - Copper prices
rebounded on Friday, paring losses for the week, after the U.S.
economy showed signs of recovery, while Europe's debt crisis
slowed demand in emerging markets.
Three-month copper on the London Metal Exchange
climbed 1.7 percent to $7,332.25 a tonne by 0741 GMT, reducing
losses for the week to 6.2 percent. Prices are headed for the
biggest weekly loss since the end of September and the first
annual decline in three years.
The most-traded February copper contract on the Shanghai
Futures Exchange gained 2.4 percent to 54,300 yuan
($8,500) a tonne. Prices tumbled to a three-week low of 52,820
yuan in the previous session. Futures have lost 24 percent this
year.
"The U.S. is doing all right and that's helped markets,"
said Ang Kok Heng, who helps manage about $400 million as chief
investment officer at Phillip Capital Management Sdn in Kuala
Lumpur.
"But Europe remains a major concern while growth in other
parts of the world such as China is also slowing."
Copper and metals, including zinc and aluminum, have fallen
this year as Europe's debt crisis stunts economic growth, saps
banks' lending for commodity trading and threatens to dampen
demand for goods exported by emerging nations.
The volatility in commodity markets has led to losses at
brokers and banks.
Credit Agricole said it will stop trading
commodities and slash its financing of the multi-billion-dollar
commodities trade as the euro zone crisis worsens.
The formerly farm-focused bank that had boosted its energy
trading in recent years warned on Wednesday of losses and
write-downs as it struggles to cope with the credit crunch.
Price gains may be capped as production at mines resumes
following labour disputes.
Freeport McMoRan Copper & Gold Inc expects full
operations at its Indonesia mine to start by early 2012 after
reaching a pay deal on Wednesday to end a three-month strike
that paralysed output at the world's second-biggest copper
deposit.
Copper inventories in warehouses monitored by the Shanghai
Futures Exchange rose 9.4 percent from a week earlier, the
exchange said on Friday.
The euro clung to modest gains against the dollar in Asia on
Friday, having ended three straight sessions of losses after a
Spanish bond sale attracted solid demand and upbeat U.S.
economic data helped revived risk appetite.
U.S. jobless claims on Thursday fell to a 3-1/2-year low and
a survey showed New York factories picked up speed this month.
Europe's top central banker said on Thursday euro zone
governments were on the right track to restore market confidence
but reminded them that an emergency programme to buy their bonds
was "neither eternal nor infinite".
Base metals prices at 0741 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7332.25 121.25 +1.68 -23.62
SHFE CU FUT MAR2 54300 1250 +2.36 -24.43
LME Alum 2005.00 30.00 +1.52 -18.83
SHFE AL FUT MAR2 15835 190 +1.21 -5.97
HG COPPER MAR2 332.75 5.90 +1.85 -25.05
LME Zinc 1888.00 43.50 +2.36 -23.06
SHFE ZN FUT APR2 14980 240 +1.63 -23.08
LME Nickel 18010.00 115.00 +0.64 -27.23
LME Lead 2010.00 35.00 +1.77 -21.18
SHFE PB FUT 15050 -270 -1.76 -17.98
LME Tin 18850.00 250.00 +1.34 -29.93
LME/Shanghai arb 155
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
third month
($1 = 6.3735 Chinese yuan)
