RTRS: Copper falls as dollar firms, U.S. jobs data in focus
* Euro falls against euro on German growth downgrade
* China industrial production figures due at weekend
* Coming Up: U.S. nonfarm payrolls report; 1330 GMT
By Silvia Antonioli
LONDON/SINGAPORE, Dec 7 (Reuters) - Copper dipped on Friday as the dollar
rose and the euro fell after Germany's central bank cut the country's growth
outlook and on investor caution ahead of jobs data from the United States which
would give an indication of the health of the world's largest economy.
China's industrial production figures due at the weekend and a U.S. rate
meeting next week by the Federal Open Market Committee (FOMC) will also be
scrutinised for signs of economic recovery and future policy.
Benchmark copper on the London Metal Exchange was $7,991 in official
rings, from $8,000 at the close on Thursday.
Keeping metals under pressure, the euro fell to a nine-day low against the
dollar after the Bundesbank slashed its growth outlook for Germany, with the
single currency at risk of more losses on prospects of a euro zone rate cut. A
stronger dollar makes metals prices in the currency more expensive for holders
of other currencies.
"The Bundesbank downgrade of German growth is taking the wind out of the euro
and there is quite a thin turnover as people are waiting to see the non-farm
payrolls," said Standard Bank analyst Leon Westgate.
"The focus is on whether the data has a bearing on fiscal cliff discussions
and whether poor data encourages politicians to seek a speedy agreement or not."
The U.S. non-farm payrolls report, due at 1330 GMT, is forecast to have
risen by 93,000 jobs in November.
The White House and Republicans in Congress dropped hints on Thursday that
they had resumed low-level private talks on breaking the stalemate over the
"fiscal cliff" but refused to divulge details.
Traders hope Washington will eventually avert some $600 billion of tax hikes
and spending cuts scheduled to start in January that threaten to tip the economy
back into recession, but they are turning risk-averse as the deadline draws
closer with no agreement in sight.
"Those sceptical of a fiscal cliff resolution may be hoping that the
non-farm payrolls shocks to the downside in order to jolt politicians into
meaningful action," Citi said in a research note.
"Those bearish on a resolution may wish for poor data leading to the
short-term pain of a negative market reaction but long-term gain as politicians
are coerced into compromise over fiscal cliff talks."
REFINING CHARGES
Traders were busy putting together term shipment deals for 2013, with
Chinese smelters and miners likely to forge agreements of $70 dollars per tonne
and 7 cents per pound for treatment and refining charges, Macquarie said in a
note.
China's smelters received term 2012 TC/RC at $60 and 6 cents from BHP for
Escondida concentrates and $63.5 and 6.35 cents from Freeport, both seen as
benchmarks in Asia.
Global miners pay TC/RC to smelters to convert concentrate into refined
metal and the charges are deducted from the sale price based on LME copper
prices. Higher charges are typically seen when concentrate supply rises.
Three-month nickel was $17,070 in the rings from a last bid of
$17,175 on Thursday.
Three-month tin, untraded in rings, was bid at $21,525 from a close
of $21,925 while zinc, also untraded, was bid at $2,013 f rom $2,030 a t
T h ursday's close.
Lead, also untraded, was bid at $2,193 from a last bid of $2,214 and
aluminium was bid at $2,077 from a last offer on Thursday of $2,085.
Metal Prices at 1316 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