Bloomberg News

Copper Gains on Expectations Demand Improving: LME Preview

September 30, 2011

Sept. 30 (Bloomberg) -- Copper gained for the first time in three days on expectations demand may be improving and as a strike at Freeport-McMoRan Copper & Gold Inc.’s copper miners added to concern about a shortage this year.

Market News:

-- The yen and dollar strengthened against most of their major counterparts as economic data added to signs that global growth is slowing, supporting demand for haven currencies. NSN LSBNQM6JIJVL <GO>

-- European leaders are turning their focus to the next steps to stem the region’s debt crisis after German lawmakers approved an expansion of the euro-area rescue fund’s firepower. NSN LSAKY26JIJUR <GO>

-- A gauge of Chinese manufacturing shrank for a third month, the longest contraction since 2009, as measures of new orders and export demand declined. NSN LSBK156JTSEC <GO>

-- German retail sales declined the most in more than four years in August as concerns about the economic impact of Europe’s sovereign debt crisis sapped consumers’ willingness to spend. NSN LSBNRG6JTSE8 <GO>

-- Consumer spending in the U.S. probably slowed in August as growing pessimism and a lack of jobs restrained the biggest part of the economy, economists said before a report today. NSN LSAWHY07SXKX <GO>

-- Oil rose in New York, paring the steepest quarterly drop since 2008, as investors speculated U.S. fuel demand will increase on signs the economy of the world’s biggest crude user is expanding faster than estimated. NSN LSBNAY6JTSEB <GO>

Metals News:

-- The biggest rout in copper since the global recession drove analysts to cut their price forecasts by 16 percent in a week as mounting concern about growth eroded expectations for supply shortages. NSN LSBIDW1A1I4H <GO>

-- Minmetals Resources Ltd., a unit of state-owned China Minmetals Group, agreed to buy Democratic Republic of Congo copper producer Anvil Mining Ltd. for HK$10 billion ($1.3 billion) to help source supply for China, the biggest consumer. NSN LSBMA16JTSED <GO>

-- Japan’s zinc output will climb in 2012 as smelters run at full capacity to meet recovering demand from the auto and construction industries after the earthquake and tsunami, amid a forecast for a global deficit. NSN LSBI1E0UQVI9 <GO>

-- Copper may rise on speculation this week’s drop was overdone, considering forecasts of a shortage. NSN LSAHLM0D9L35 <GO>

-- Japan’s copper wire and cable shipments will likely drop 2.2 percent in the year ending March 31 from a year earlier, an industry group said. NSN LSBIG31A74E9 <GO>

--Editor: John Deane

To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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