Bloomberg News

Copper Drops as China, Europe Dim Demand Outlook: LME Preview

October 19, 2011

Oct. 19 (Bloomberg) -- Copper declined for a third day in London on speculation that the slowing Chinese economy and deepening debt crisis in Europe may curb global demand for the metal used in wires and cables.

Market News:

-- European banks, assuring investors they can weather the sovereign debt crisis by selling assets and reducing lending, may not be able to raise money fast enough to prevent government-forced recapitalizations. {NSN LTA7ZX1A1I4H <go>}

-- Spain’s credit rating was cut for the third time since June of last year by Moody’s Investors Service as Europe’s debt crisis threatens to engulf the nation. {NSN LTACL007SXKX <go>}

-- Asian stocks rebounded from the biggest loss in two weeks, emerging-market currencies gained and bond risk fell amid speculation European leaders will stem the region’s debt crisis. U.S. equity futures declined after Apple Inc.’s profit missed analyst estimates. {NSN LTAU7P1A1I4V <go>}

-- The euro rose against most of its major counterparts before European Union leaders hold a summit on Oct. 23 to deal with the region’s debt crisis. {NSN LTAULX6S972A <go>}

-- The cost of living in the U.S. probably eased September, a sign inflation may moderate as Federal Reserve officials have forecast, economists said before a report today. {NSN LTA5JE07SXKX <go>}

-- Oil traded near the highest price in more a month after Goldman Sachs Group Inc. cited “upside” potential, countering forecasts of rising U.S. crude inventories. {NSN LTAUNV0YHQ0X <go>}

Metals News:

-- PT Timah, the largest tin exporter, will delay a plan to resume shipments until prices recover and as the company continues to negotiate with its contractual buyers, an executive said. {NSN LTAVIH07SXKX <go>}

-- BHP Billiton Ltd., the world’s largest mining company, said copper output dropped 24 percent because of lower grades and strikes at Escondida in Chile as well as planned maintenance and outages at Pampa Norte in Chile and Olympic Dam in Australia, it said. {NSN LTAD7H07SXKX <go>}

-- Freeport-McMoRan Copper & Gold Inc.’s Cerro Verde copper mine in Peru is operating at 40 percent capacity as the company uses non-union staff to run operations while unionized workers strike. {NSN LTA72B6S972A <go>}

-- Vale SA, the world’s largest iron-ore producer, said it may consider changing the pricing on some contracts for the steel- making raw material after the spot-market price fell to its lowest in almost a year. {NSN LTA35Y6KLVRC <go>}

-- Iron-ore swaps on Singapore Exchange Ltd. posted a record volume yesterday, clearing 543,000 metric tons or 1,086 contracts, the bourse said. {NSN LTAK0B6K50XZ <go>}

Other Markets:

Last % Change % YTD U.S. Dollar Index 76.92 -0.3 -2.7 Crude oil $88.31 0.0 -3.4 Gold $1,653.68 -0.3 16.4 MSCI World Index 1,181.34 0.3 -7.7

--Editors: Claudia Carpenter

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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