RTRS:METALS-Copper falls on weak euro; Europe crisis measures eyed
* Euro falls vs dollar on weak German data
* Markets hope for ECB action to help Spain, Italy
* Coming up: U.S. weekly mortgage index at 1100 GMT
By Harpreet Bhal
LONDON, Aug 8 (Reuters) - Copper slipped on Wednesday,
retreating from a one-week high hit in the previous session as a
weak euro weighed on prices, but further losses were stemmed by
hopes of more policy measures from Europe to combat the region's
prolonged debt crisis.
Benchmark copper on the London Metal Exchange (LME)
slipped to $7,533 a tonne at 0929 GMT, down 0.6 percent from a
close of $7,580 on Tuesday's when it hit a one-week intraday
high.
Putting pressure on metals prices was a drop in the euro
against the dollar, after data showed German imports fell
sharply for the second time in three months in June.
A strong dollar makes commodities priced in the U.S. unit
more expensive for holders of other currencies.
Improving risk appetite in recent days helped lift copper
prices earlier this week, with market participants hoping that
the European Central Bank will start buying bonds to help
contain surging borrowing costs for Spain and Italy.
"The sense from the recent ECB meeting is that maybe things
will not get significantly worse and that the ECB may start to
act as a lender of last resort," said Robin Bhar, analyst at
Societe Generale.
"That perhaps has put a floor under metals prices and,
barring any further negative news, one could argue most of the
bearish newsflow should be in the price."
Further hopes for easing were raised on the other side of
the Atlantic, when Boston Fed Bank President Eric Rosengren said
the central bank should launch another bond buying programme of
whatever size and duration is necessary to get the economy back
on its feet.
The metal used in power and construction rose 3.5 percent
over the last three days, its biggest three-day rally in more
than a month, but is still almost 2 percent so far this quarter.
Trading volumes remained low, with market participants away
for the summer period and industry in Europe shuts down for
maintenance.
Reflecting a lack of conviction about copper's short-term
price direction, the open interest in the LME copper contract
remained near recent five year lows, despite a slight uptick.
"I don't expect any significant breakout for copper from its
recent range. It is stuck between a broad 7,300 and 7,600 range
and is likely to move sideways over the next six to eight
weeks," Bhar said.
CHINA EYED
Investors are expected to keep a close watch on economic
data from top consumer China, for an indication of the pace of
growth in a country that accounts for around 40 percent of
global copper demand.
China inflation and industrial production figures are due on
Thursday and Chinese trade data will be released on Friday.
"If the Chinese data this week is steady - that's all it has
to be - you'll probably find the price will trade higher," said
Jonathan Barratt, chief executive of BarrattBulletin, a
Sydney-based commodity research firm.
In other metals, tin slipped to $18,200 from
Tuesday's close of $18,270, when it rallied on news Indonesia's
PT Timah stopped selling tin on the spot market
because of low market prices for the metal.
Indicating a tightening market, the premium for cash tin
over three months moved from a $16 discount to a
$13 premium in Tuesday's trade.
Battery material lead slipped to $1,905 from
Tuesday's close of $1,909 a tonne and aluminium fell to
$1,905 from $1,909.50.
Zinc, used in galvanising, was at $1,858.75 from
$1,873 while nickel dropped to $15,707 from Tuesday's
close of $15,750.
Metal Prices at 0929 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
move
COMEX Cu 341.50 -2.55 -0.74 344.75 -0.94
LME Alum 1905.00 -4.50 -0.24 2020.00 -5.69
LME Cu 7533.00 -47.00 -0.62 7600.00 -0.88
LME Lead 1905.00 -4.00 -0.21 2034.00 -6.34
LME Nickel 15700.00 -50.00 -0.32 18650.00 -15.82
LME Tin 18144.00 -126.00 -0.69 19200.00 -5.50
LME Zinc 1858.50 -14.50 -0.77 1845.00 0.73
SHFE Alu 15425.00 55.00 +0.36 15845.00 -2.65
SHFE Cu* 54850.00 -10.00 -0.02 55360.00 -0.92
SHFE Zin 14675.00 65.00 +0.44 14795.00 -0.81
** Benchmark month for COMEX copper
