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RTRS:METALS-Copper steadies; German ruling, Fed meeting in focus
 
* German court to rule on bailout fund on Wednesday
* U.S. Federal Reserve concludes policy meeting on Thursday
* Strong euro helps limit falls for metals

By Harpreet Bhal
LONDON, Sept 11 (Reuters) - Copper steadied on Tuesday after
hitting a four-month high in the previous session, with trading
likely to remain cautious ahead of a German ruling on the euro
zone's bailout fund and a Fed meeting which could reveal
additional stimulus measures.
Three-month copper on the London Metal Exchange
stood at $8,067 a tonne at 0912 GMT, almost flat against a close
of $8,068 on Monday.
Germany's Constitutional Court said it would go ahead with
Wednesday's ruling on the legality of the European Stability
Mechanism (ESM) and the fiscal compact for budget discipline,
whose implementation has been delayed for months by the German
judges.
Experts believe the court will approve the new permanent
bailout fund and the budget deal, while possibly imposing tough
conditions limiting Berlin's flexibility on future rescues.

The market was also focused on a meeting by the U.S.
Federal Reserve which ends on Thursday, after poor job figures
for August raised the chances the central bank will take out
extra insurance against an economic relapse by plumping for
fresh monetary stimulus. ID:nL4E8K806T]
"Ahead of the conclusion of the two-day Fed meeting we are
likely to see rather quiet trading but prices will probably make
significant gains if the Fed announces QE3," said Daniel
Briesemann, analyst at Commerzbank.
Copper broke above the $8,000 mark for the first time since
mid-May on Tuesday. It has erased year-to-date losses of 5
percent seen in June to post gains of more than 5 percent, most
of which were added in September.
"This upward trend could continue. After the change of
leadership in China we could see some renewed strong growth in
the Chinese economy and we expect higher prices not only for
copper but for base metals in general," Briesemann added.
China, the world's top metals consumer, is preparing for a
once-a-decade leadership change later this year.
Keeping prices supported on Tuesday was a rise in the euro
to a four-month high against the dollar, on speculation the
German court will back the euro zone's bailout fund and that
further easing is likely to come from the U.S. Fed.
A weak dollar makes commodities priced in the U.S. unit
cheaper for holders of other currencies.
"From our side, we expect prices to stabilise. If any easing
announcements are more pronounced than expected you can easily
have prices trend higher. The dollar has come under pressure, so
part of this move is dollar related," said Dominic Schnider,
head of commodity research at UBS Wealth Management.



CHINA
Also supporting commodities was a series of spending and
subsidy announcements by China, which accounted for 40 percent
of refined copper demand last year.
"It's probably a bit early to call for an acceleration (in
housing market growth) but at least the drag on the housing side
is likely to disappear. We have seen from the provinces and the
government some stimulus measures, so that should help," added
Schnider.
Fixed asset investment, which accounted for half of China's
net economic growth in the first-half of 2012, grew 20.2 percent
between January and August compared to the same period a year
earlier, even as China's factories ran at their slowest rate for
39 months, data on Sunday showed.
Officials last week also revealed they had given the green
light to 60 infrastructure projects worth more than $150
billion, as Beijing seeks to energise the economy. The
announcement fueled investor hopes the world's growth engine may
get a lift in the fourth quarter of the year and beyond.

In other metals, aluminium was at $2,056.25 from
Monday's close of $2,060, while zinc, used to galvanize
steel, was at $2,002.75 from $2,015. Battery material lead
was almost flat at $2,119 from $2,120.
Tin was at $20,725 from a close on Monday of $20,600
while nickel slipped to $16,738 from $16,775.

Metal Prices at 0907 GMT
Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T
Metal Last Change Pct Move End 2011 Ytd Pct
move
COMEX Cu 369.75 -0.05 -0.01 344.75 7.25
LME Alum 2057.00 -3.00 -0.15 2020.00 1.83
LME Cu 8075.25 7.25 +0.09 7600.00 6.25
LME Lead 2120.25 0.25 +0.01 2034.00 4.24
LME Nickel 16739.00 -36.00 -0.21 18650.00 -10.25
LME Tin 20640.00 40.00 +0.19 19200.00 7.50
LME Zinc 2003.25 -11.75 -0.58 1845.00 8.58
SHFE Alu 15730.00 -10.00 -0.06 15845.00 -0.73
SHFE Cu* 58320.00 180.00 +0.31 55360.00 5.35
SHFE Zin 15320.00 -15.00 -0.10 14795.00 3.55
** Benchmark month for COMEX copper
* 3rd contract month for SHFE AL, CU and ZN
Source