(Updates prices)
By Rujun Shen
SINGAPORE, Sept 12 (Reuters) - London copper declined 1
percent on Monday, extending a fall of 3.2 percent in the
previous session, as mounting worries about stalled economic
growth in the West outweighed robust growth in China's copper
imports.
Asian stocks fell and the euro sank to a 10-year low against
the yen after the resignation of Juergen Stark from the European
Central Bank board on Friday fuelled fears over Europe's ability
to tackle the sovereign debt crisis.
Underlining the weak sentiment in copper, some European and
U.S. clients have sought to cancel orders from Chile's Codelco,
the world's top copper producer, on fears of a downturn in
demand.
"The euro cracked and risk has cracked," said a
Singapore-based trader. "The foreign exchange market has taken a
turn to the worse and base metals are going to be shattered
today."
Three-month copper on the London Metal Exchange fell
to a three-week low of $8,705.75 a tonne, before regaining some
lost ground to $8,725 by 0528 GMT, down 1 percent from the
previous close.
LME copper has fallen nearly 6 percent so far this month,
after losing 5.6 percent in August.
The Shanghai market is closed on Monday for the mid-autumn
festival holiday.
Technical analysis suggested that copper could fall to
$8,560 in the day, said Reuters market analyst Wang Tao.
Even an improving imports number from China failed to lift
the sentiment. China's copper imports rose 11 percent from a
month earlier to 340,398 tonnes in August, official customs data
said.
"The imports data is very bullish, considering that in late
June and early July when these purchases were made, prices were
high and arbitrage was not favourable," said David Thurtell, a
Citigroup analyst.
But the euro zone debt crisis has overwhelmed investors,
even though copper fundamentals remain favourable in light of
China's strong import numbers and recent labour disputes in Peru
and Indonesia, he said.
"If euro zone concerns escalate, copper could head towards
the lower $8,000s," said Thurtell.
LME aluminium fell to $2,349.50, its lowest since
Aug. 25, and traded down 0.7 percent at $2,350.25.
Aluminium stocks held at three major Japanese ports at the
end of August stood at their highest since May 2009, boosted by
the arrival of delayed shipments from July, an official at
trading house Marubeni Corp said on Monday.
Base metals prices at 0528 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 8725.00 -96.00 -1.09 -9.11
LME Alum 2350.25 -16.75 -0.71 -4.85
HG COPPER DEC1 395.10 -5.50 -1.29 -11.00
LME Zinc 2163.00 -22.00 -1.01 -11.86
LME Nickel 20950.00 -200.00 -0.95 -15.35
LME Lead 2404.00 -46.00 -1.88 -5.73
LME Tin 23505.00 0.00 +0.00 -12.62
LME/Shanghai arb -2413
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
