Reuters reported that London copper futures edged lower hurt by a firmer dollar after rising more than 1% in the previous session on a tighter global supply outlook.
Fundamentals
1. Three month copper on the London Metal Exchange dropped USD 22 to USD 8,543 per tonne by 0119 GMT. But the metal is up marginally for the week so far, its third gain in 4 weeks.
2. The most traded June copper contract on the Shanghai Futures Exchange gained 0.7% to CNY 60,850 per tonne, chasing Thursday's gains in London.
3. Freeport McMoran Copper & Gold Inc said that Q1 copper output would be down by about 10% because of labor related problems at its Grasberg mine in Indonesia which will not return to full production until the Q2.
4. LME copper has risen more than 12 percent so far this tear benefitting, like other risk assets, from increased liquidity across markets as central banks around the world ease credit curbs to spur economic growth.
5. Copper's price gain comes despite a shaky outlook for demand from top consumer China. Premier Mr Wen Jiabao said that China must embrace slower growth and bolder political reform to keep its economy from faltering, and also dampened hopes for any near-term relaxation of curbs in the property sector.
6. Aurubis, Europe's biggest copper producer is confident of strong copper demand from China this year despite forecasts of slower growth in the country.
7. RUSAL Plc, the world's largest aluminium company, is expected to pick a new chairman on Friday to steady a ship still rocking from the parting shot fired by Viktor Vekselberg, who said it was in deep crisis.
