RTRS:METALS-London copper steady; heads for biggest monthly gain in 3
* LME copper heads for 11 pct gain in Jan
* Euro zone debt crisis worries blunt Asian demand optimism
* Coming Up: U.S. consumer confidence; 1500 GMT
(Updates prices)
By Jane Lee
KUALA LUMPUR, Jan 31 (Reuters) - London copper was
steady on Tuesday as investors focused on the funding needs of
Greece and Portugal, after two days of decline that have brought
the metal back from a four-month high.
Strong economic data from the United States and a promise by
the Federal Reserve to keep interest rates low until 2014 pushed
copper towards its biggest monthly gain in three months, but
worries about Greece's ability to reach a deal on its debt and
soaring yields on Portuguese bonds undermined some of the
optimism.
Three-month copper on the London Metal Exchange
inched up 0.5 percent to $8,468.75 a tonne by 0723 GMT, after
its biggest decline in more than a week in the previous session.
The metal is headed for an 11 percent gain in January.
The most-traded April copper contract on the Shanghai
Futures Exchange gained 0.5 percent to 60,620 yuan
($9,600) a tonne.
"Copper is a bellwether for global growth and any sort of
negative macro themes will mean copper will be pressured," said
Natalie Robertson, a commodity strategist at ANZ Investment Bank
in Melbourne.
"The market's still very much watching what's happening in
Greece and now Portugal is starting to come back into the
picture. That's quite a worry."
Portugal's 10-year government bond yield
topped 17 percent on Monday, its highest since the euro was
launched, stoking fears that Lisbon may become the next Athens
in needing a second bailout to avoid bankruptcy.
Greek Prime Minister Lucas Papademos said negotiators had
made "significant progress" on talks for a debt swap deal
between the government and private bond holders, with the aim of
having a definitive agreement by the end of this week.
J.P. Morgan cut its price forecasts for base metals for 2012
as price gains so far this year aren't sustainable, the
investment bank said.
Offsetting the grim picture in Europe, the IMF's top
official for Asia and the Pacific said Asian economies remain
"generally resilient" in the face of global financial turmoil
and a growing debt crisis in the euro zone.
In northern Chile, workers of a union at Teck Resources
Ltd's mid-sized Quebrada Blanca copper mine are poised
to strike after labor contract talks with the mining company
broke down, a union leader said on Monday.
Base metals prices at 0723 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 8468.75 39.75 +0.47 11.43
SHFE CU FUT APR2 60620 300 +0.50 9.50
HG COPPER MAR2 385.00 2.35 +0.61 12.05
LME Alum 2293.50 14.50 +0.64 13.54
SHFE AL FUT APR2 16305 30 +0.18 2.90
LME Zinc 2125.00 1.00 +0.05 15.18
SHFE ZN FUT APR2 16065 125 +0.78 8.58
LME Nickel 21350.00 45.00 +0.21 14.11
LME Lead 2278.00 13.00 +0.57 11.94
SHFE PB FUT 16160.00 40.00 +0.25 5.72
LME Tin 24100.00 125.00 +0.52 25.52
LME/Shanghai arb^ 1927
Shanghai and COMEX contracts show most active months
^ LME 3-month copper in yuan, including 17 pct VAT, minus
SHFE third month
