AF: Copper dips on recovery doubts as China data mixed
LONDON June 11 (Reuters) - Copper prices eased on Friday on
worries over economic recovery as investors mulled mixed data on
Chinese output and inflation.
A batch of mixed Chinese economic data showed inflation
quickening to a 19-month high in May, although a moderation of
growth in factory output and capital spending eased worries for
some that the world's third-largest economy could overheat.
[ID:nTOE65A019]
China, the world's top base metals consumer, also posted a
record level of primary aluminium output in May, but a slower
rate of production is expected in June as low prices spur cuts
by smelters. [ID:nTOE65907H]
"China doesn't want to slow growth," said David Wilson, an
analyst at Societe Generale. "If there is going to be a
double-dip (recession) in the rest of the world, which the
market thinks is a possibility, China is going to ensure it's
not really impacted.
"It is going to maintain spending levels and maintain
stimulus spending ... There is still every reason to see that
China is going to continue to grow."
On Thursday, data showed China's copper imports at around
397,000 tonnes were slightly below forecasts, but analysts had
expected a drop from April's 436,345 tonnes as measures to cool
growth rates and slow property speculation took hold.
[ID:nTOE657073]
PRICES
* Three-month copper CMCU3 on the London Metal Exchange
was at $6,388 a tonne by 0755 GMT compared with Thursday's close
of $6,410 per tonne while aluminium CMAL3 was $1 lower at
$1,950.
DATA/EVENTS
* UK industrial and manufacturing production for April at
0830 GMT.
* UK producer prices for May at 0830 GMT.
* U.S. retail sales for May at 1230 GMT.
* Thomson Reuters/Univ of Mich June preliminary consumer
sentiment at 1355 GMT.
* U.S. business inventories for April at 1400 GMT.
* U.S. ECRI weekly at 1430 GMT.
[ECI/US] [ECI/EURO] [ECI/GB] [M/DIARY] [MTL/DIARY]
MARKET NEWS
* Asian stocks rose for a fourth day on optimism that the
world economic recovery was on track despite Europe's debt woes,
while the euro was steady after a rally the previous day.
[MKTS/GLOB]
* The euro ran into headwinds above $1.21 as profit-booking
set in when it failed to push through hefty resistance, and
investors took a lack of surprises in Chinese data to book gains
in the Aussie dollar. [USD/]
* Oil slid following data showing weaker-than-expected
Chinese industrial output for May, though investor confidence in
the country's growth helped prices hold above $75, headed for a
weekly gain of 5 percent. [O/R]
* U.S. stocks posted their best day in the last nine on
Thursday in response to signs of health in the euro debt market
and as investors snapped up energy shares crushed in the
previous day's sell-off. [.N]
FUNDAMENTALS
* Australian Prime Minister Kevin Rudd denied on Friday talk
of a swift deal with miners over his controversial mining tax,
as global miner BHP Billiton rejected a rumoured tax compromise
affecting the nation's top export sector. [ID:nSGE6590LQ]
* A Philippine province is almost certain to ban open pit
mining due to environmental concerns, its governor said on
Thursday, a move that could threaten development of one of
Southeast Asia's richest copper-gold mines. [ID:nSGE6590LL]
* Copper and oil prices could leap on strong industrial
demand in coming months and gold may rise further on
inflation-linked buying, suggesting a new wave of gains for
commodities. [ID:nN10567097]
* Global copper prices are expected to remain volatile in
the medium term, Xstrata Copper(XTA.L: Quote) Chief Executive Charlie
Sartain said on Thursday. [ID:nN10217125]
* Mexican miners clashed briefly with federal police on
Thursday at the Cananea copper mine, raising tensions which
could complicate owner Grupo Mexico's efforts to reopen the pit
after a nearly 3-year-long strike was broken. [ID:nN10264269]
* China's production of refined copper rose 4.7 percent from
a month earlier in May thanks to steady domestic demand and new
capacity. [ID:nTOE65907H]
* Australia's second biggest nickel miner, Minara Resources
(MRE.AX: Quote), will resume normal nickel production next week
following repairs to its Murrin Murrin mine, it said on Friday.
[ID:nSYU010059]
TECHNICALS
* Copper support at $6,223, resistance $6,475, and 14-day
RSI at 41.9.
* Aluminium support at $1,900, resistance at $1,973, and
14-day RSI 44.6.
(Reporting by Michael Taylor; editing by Jane Baird)