Bloomberg News

Copper Pares Gains on Speculation of Higher Rates: LME Preview

June 09, 2011

June 9 (Bloomberg) -- Copper pared gains in London on speculation central banks will raise interest rates, cooling growth and demand for industrial metals.

Market News:

-- Oil rose for a third day in New York after OPEC failed to reach an agreement on production targets for the first time in at least 20 years and U.S. crude inventories fell more than analysts forecast. NSN LMI9616JTSEF <GO>

-- Japan’s economy contracted more than economists estimated in the first quarter, underscoring the damage the March 11 earthquake and tsunami inflicted on capital spending and factory production. NSN LMI8FO1A74E9 <GO>

-- The euro climbed toward a one-month high versus the dollar on speculation European Central Bank President Jean-Claude Trichet will today signal policy makers are likely to raise interest rates next month. NSN LMIE3W07SXKX <GO>

-- International Monetary Fund acting head John Lipsky said his organization is standing by a 4.4 percent forecast for global growth this year even as developed economies hit a “soft patch.” NSN LMID0T0D9L35 <GO>

-- The U.S. trade deficit probably widened in April to a 10- month high as the climbing cost of foreign oil overshadowed a drop in auto imports, economists said before a report today. NSN LMHNRU1A1I4H <GO>

-- Japanese machine tool orders rose 34.2 percent in May from a year earlier, the Japan Machine Tool Builders’ Association said in a preliminary report. NSN LMIE6I0YHQ0X <GO>

-- Australian employers added fewer workers than economists forecast in May and full-time jobs declined for a second month, sending the nation’s currency lower as investors reduced bets on interest-rate increases. NSN LMI76C6JTSE8 <GO>

-- President Barack Obama’s advisers have discussed seeking a temporary cut in the payroll taxes businesses pay on wages as they debate ways to spur hiring amid signs that the recovery is slowing, according to people familiar with the matter. NSN LMI0916S972E <GO>

Metals News:

-- Nickel pig iron output in China, the world’s largest metals user, may surge 50 percent this year, possibly curbing demand for the refined product and hurting prices that have lagged behind all other base metals in London. NSN LMI5ZE0UQVI9 <GO>

-- Copper prices will rise to a record $12,000 a metric ton by the end of the year as China’s imports rebound, said Nicholas Snowdon, an analyst at Barclays Capital in London. NSN LMHD9S0YHQ0X <GO>

-- Ferrochrome prices may drop about 7 percent in the third quarter to $1.25 a pound from the current spot price of $1.24 a pound, JPMorgan Chase & Co. said. NSN LMIES06JIJUO <GO>

-- Alcoa Inc., the largest U.S. aluminum producer, said it has developed a range of alloys and components to make aircraft lighter in response to the use of composite materials by aerospace companies. NSN LMHUKZ07SXKX <GO>

-- Noble Group Ltd., the Hong Kong-based commodity trader, offered A$90 million ($96 million) for the shares in Territory Resources Ltd. it doesn’t own, outbidding a deal agreed to with Exxaro Resources Ltd. NSN LMHZG26TTDWY <GO>

Metals Prices:

--Editors: John Deane, Claudia Carpenter

To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@abloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter@bloomberg.net.


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