Copper steadies from two-week low, growth woes cap gains
SINGAPORE (Reuters) - Copper steadied on Thursday from two-week lows in line with a rebound in the euro, but more weak forecasts from U.S. companies and a downgrade to Spain's credit rating eroded risk appetite, capping the metals' advance.
Oil major Chevron Corp (CVX cheap louis vuitton handbags
.N) followed aluminum producer Alcoa (AA.N) to lower demand forecasts on Wednesday, which soured sentiment モンクレール
, dragged on risk appetite and dampened demand expectations for industrial metals.
The news came after the International Monetary Fund cut its global growth forecast for the second time since April and the World Bank said there was a risk the slowdown in China could worsen and last longer than many analysts had forecast.
"The mining companies and Alcoa are saying they're expecting reduced demand, the IMF and World Bank have said growth is going lower ... There's too much negative news out there coach outlet online
. It's an issue until we get some concrete earnings that tell us there's an improvement," said Jonathan Barratt, chief executive of Barratt's Bulletin, a Sydney-based commodity research firm.
"When it comes to demand for primary (copper) imports, tell me what is positive out there ?louis vuitton outlet
, for copper there has been a supply issue, but people are happy to buy only what they need, when they need it モンクレール ダウン 激安
," he added.
Three-month copper on the London Metal Exchange traded at $8,177 a metric ton (1.1023 tons) by 11.15 p.m. EDT on Wednesday, steadying from two-week lows of $8,105 hit earlier in the session.
Prices which rallied nearly 10 percent in the wake of easing announcements by the U.S. Federal Reserve and a bond buying promise by the European Central Bank on September 6 have now lost their froth as markets get to grips with the realities of stuttering global growth and a delayed revival in China.
The most-traded January copper contract on the Shanghai Futures Exchange climbed 0.36 percent to 59,070 yuan ($9,400) a metric ton.
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, lead and nickel also hit their lowest in around one month in early trade.
China is the world's top consumer of metals, accounting for 40 percent of refined copper demand last year.
The euro dipped to its lowest since October 1 after Standard & Poor's on Wednesday cut Spain's sovereign credit rating to BBB-minus, before it recovered, easing pressure on metals.
A stronger greenback dents the appeal of U.S. dollar-priced metals to holders of other currencies.
Tepid demand growth and improving mine supply will next year swing the copper market into a 458,000-tonne surplus, snapping a three-year run of deficits, the International Copper Study Group (ICSG) said on Wednesday モンクレール ダウン キッズ Dale Hunter
Along a similar line, China's demand signals remained so slack for the fourth quarter that some semis manufacturers were considering further exports of surplus stock, a China copper analyst at a producer said.
"Seasonally, in July and August we expect weaker demand but by October it should improve. But some copper semis producers are saying that Q4 orders are in line with Q3, and maybe even have declined a little bit. They're talking about exporting their extra copper to foreign countries," she said.
"Codelco import cathode negotiations are coming up and so are TC/RC talks (treatment and refining charge), so we can find a signal on growth expectations for next year. There may be some change in sentiment after LME Week in London next week," she added.
Top copper producer Chile's Codelco CODEL.UL is expected to agree on term premiums of around $105 for shipments of refined copper cathode to China during the industry's key event, LME Week, when smelters will also hammer out 2013 processing fees with miners.
Base metals prices at 0315 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 8177 モンクレール 激安
.00 12.00 +0 mulberry outlet It’s time to bring sport to the t
SHFE CU FUT JAN3 59070 210 +0.36 6.70
HG COPPER DEC2 372.25 0.45 +0.12 8.34
LME Alum 2012.00 3.00 +0.15 -0.40
SHFE AL FUT JAN3 15600 15 +0.10 -1.55
LME Zinc 1989.00 15.00 +0.76 7.80
SHFE ZN FUT JAN3 15395 -15 -0.10 4.06
LME Nickel 17780.00 110 coach factory store
.00 +0.62 -4.97
LME Lead 2208.00 11.00 +0.50 8.50
SHFE PB FUT 15900.00 -10.00 -0 モンクレール ジャケット What clinched it fo
LME Tin 21821.00 -4.00 -0.02 13.65
LME/Shanghai arb^ 977
Shanghai and COMEX contracts show most active months
($1 = 6.2833 Chinese yuan)
(Reporting by Melanie Burton; Editing by Joseph Radford)