RTRS:METALS-Copper slips on euro zone crisis concerns
* Slovak parliament to vote on ratifying euro fund
* Slowdown in economy threatens demand outlook, China eyed
* Alcoa's Q3 earnings to shed light on aluminium demand
By Harpreet Bhal
LONDON, Oct 11 (Reuters) - Copper slipped on Tuesday prompted by concerns
about the debt crisis in the euro zone, with uncertainty prevailing ahead of the
outcome of a vote by Slovakia to approve new powers of the euro zone rescue
fund.
Benchmark copper on the London Metal Exchange (LME) fell to $7,268 a
tonne by 0904 GMT, down from Monday's close of $7,495 a tonne.
Sentiment was fragile ahead of a vote in Slovakia to ratify the expansion of
the euro zone rescue fund, aimed at preventing the Greek debt crisis from
spiralling out of control.
One small party in Slovak Prime Minister Iveta Radicova's governing
coalition opposes expanding the fund, which requires the unanimous consent of
all euro zone.
"It is disappointing that despite the crisis going on for months, euro zone
policymakers have failed to find a solution to the crisis. The longer it goes on
for, the more difficult it is to see any sustainable rally in prices,"
Commerzbank analyst Eugen Weinberg said.
Also putting pressure on prices was a rise in the dollar, which reversed
earlier weakness to gain against a basket of currencies. A strong dollar makes
commodities priced in the U.S. unit more expensive for holders of other
currencies.
With the outlook for global economic growth looking murky, investors worry
that the demand for metals such as copper, which is used in power and
construction, will take a hit.
Copper prices have fallen 30 percent since hitting a record high of $10,190
a tonne on February 15, and are trading around 24 percent lower in the year to
date.
Market participants are expected to scrutinise the figures for signs of any
economic slowdown in China, the world's fastest growing economy and biggest
consumer of metals.
"Despite China's return from holidays, buying was reportedly muted as
Chinese merchants also remained cautious," ANZ said in a note, adding that
investors are likely to wait-and-see whether European policymakers are able to
deliver viable plans to overcome the region's debt crisis.
ALCOA EYED
In other metals, aluminium slipped to $2,235 a tonne. It was
untraded at the close on Monday, but was bid at $2,258 a tonne.
Aluminium producer Alcoa kicks off the third-quarter U.S. earnings
season after markets close on Tuesday.
Worries about the euro zone debt crisis, and concerns about demand from top
consumer China have put pressure on the outlook for the company. Its results are
expected to reflect a weakened economy, with demand for aluminum strong in some
sectors such as aerospace but weak in others like construction.
Lead was at $1,965 a tonne from Monday's close of $2,005 a tonne,
while zinc fell to $1,916 from $1,950 a tonne on Monday.
Tin was at $22,410 a tonne from a close of $23,050 on Monday and
nickel traded at $18,910 a tonne from $19,375 on Monday.
Metal Prices at 0912 GMT
Comex copper in cents/lb, LME prices in $/T and SHFE prices in
yuan/T
Metal Last Change Pct Move End 2010 Ytd Pct
move
COMEX Cu 327.20 -9.20 -2.73 444.70 -26.42
LME Alum 2234.25 6.25 +0.28 2470.00 -9.54
LME Cu 7273.75 -221.25 -2.95 9600.00 -24.23
LME Lead 1968.25 -36.75 -1.83 2550.00 -22.81
LME Nickel 19000.00 -375.00 -1.94 24750.00 -23.23
LME Tin 22401.00 -649.00 -2.82 26900.00 -16.72
LME Zinc 1917.00 -33.00 -1.69 2454.00 -21.88
SHFE Alu 16690.00 15.00 +0.09 16840.00 -0.89
SHFE Cu* 54210.00 -270.00 -0.50 71850.00 -24.55
SHFE Zin 15135.00 25.00 +0.17 19475.00 -22.28
** Benchmark month for COMEX copper
* 3rd contract month for SHFE AL, CU and ZN