|
SINGAPORE (Reuters) - Copper edged lower on Friday, headed for its fourth straight weekof losses, as investors worried about a possible Greek exit fromthe euro zone and global economic growth, but hopes that Chinesedemand will improve lent some support. Three-month copper on the London Metal Exchange inched down 0.3percent to $7,589.75 a tonne by 0309 GMT, on track for a 0.9percent weekly decline, its fourth consecutive week in the red. The most-traded September copper contract on the Shanghai FuturesExchange lost half a percent to 54,900 yuan ($8,700). A pickup in copper consumption in China, the world's top user ofthe metal, is likely to provide a floor for prices, aided byexpectations of more pro-growth measures from Beijing after recentdisappointing economic data. China's massive manufacturing sector contracted for the seventhstraight month in May, adding to worries about global growth as theeuro zone's slump deepened and the U.S. economy seemed to be losingmomentum. "The logic in the market is that the worse economic data becomes,the more likely the government will ease its policy," said ChenDixi, an analyst at Jinrui Futures in the southern Chinese city ofShenzhen. "Whether LME can hold onto to $7,500 will depend on the situationin euro zone," Chen added. Beijing has given signals that it will do more to shore up theeconomy. Earlier in the week, Premier Wen Jiabao said China willset up policy fine-tuning to support the economy, a day after themarket buzzed with excitement when Beijing said it will fast trackapprovals for investment in the resource-heavy infrastructuresector. These policies will help copper demand in China to improve in thesecond half of the year, Chen said. Shanghai copper spread remained in a backwardation, withfront-month contract at a nearly 700 yuan premium to the mostactive contract. Physical copper enjoyed a premium of up to 300 yuan to thefront-month futures contract due to the tightness in supply andimproving demand, dealers said. "There's not much branded copper stocks in the market, especiallyas the import spree is over now," said a Shanghai-based dealer. "Copper consumption is improving, but aluminium and zinc are quitemiserable." The Shanghai Futures Exchange is due to report the weekly stocksdata later in the day. Copper stockpiles fell 7 percent in thesixth straight week of decline to 173,814 tonnes, down 24 percentfrom a decade high hit in mid March. CU-STX-SGH LME aluminium edged up 0.1 percent to $2,017.25, heading for a2.5-percent weekly fall, its biggest in two months. Trafigura and U.S. aluminium producer Ormet Corp have formed ajoint venture to buy bauxite, alumina and aluminium projects, theysaid on Thursday, as the Swiss trading house builds a physicalpresence in the aluminium market. (Editing by Miral Fahmy) Thomson Reuters 2012 All rights reserved SUBSCRIBE to Mineweb.com's free daily newsletter now. We are high quality suppliers, our products such as China CCTV IR Cameras , China Plastic Dome Camera for oversee buyer. To know more, please visits IR IP Cameras.
Related Articles -
China CCTV IR Cameras, China Plastic Dome Camera,
|
