Bloomberg News

Copper Advances in London on Signs of U.S. Recovery: LME Preview

December 30, 2011

Dec. 30 (Bloomberg) -- Copper climbed in London, paring its first annual decline since 2008, on speculation U.S. economic recovery will boost demand for industrial metals.

Market News:

-- China’s manufacturing contracted for a second month in December as Europe’s debt crisis cut export demand, fueling speculation that the central bank may cut lenders’ reserve requirements within days. {NSN LX02QQ6K50XS <GO>}

-- Commodities headed for the first annual drop since 2008, paced by declines in cotton, copper and cocoa, on concern that the European sovereign-debt crisis and a cooling Chinese economy will sap demand for raw materials. {NSN LX013I6JTSE9 <GO>}

-- Treasuries snapped a three-day gain on speculation the rally that pushed U.S. government securities to their best year since 2008 will give way to losses in 2012 as the economy improves. {NSN LX05CI6JTSE9 <GO>}

-- Singapore’s economy probably contracted in the fourth quarter as manufacturing slumped, increasing pressure on the island’s policy makers to stimulate growth even as inflation accelerates. {NSN LWZXO20YHQ0X <GO>}

-- South Korea’s inflation exceeded the central bank’s target and all forecasts in a Bloomberg News survey, limiting the scope for an interest-rate cut in January even as threats to growth mount. {NSN LWZUVK6K50Y0 <GO>}

-- Germany’s plan to speed up payments into Europe’s future permanent bailout fund with cash is aimed at securing the highest ratings for its bonds, said a senior lawmaker from Chancellor Angela Merkel’s party. {NSN LWZ3XA0D9L35 <GO>}

-- Home prices in Australia’s eight capital cities slid 3.7 percent in the first 11 months of 2011, extending the biggest drop in at least 12 years on concerns Europe’s debt crisis may damp the nation’s economic growth. {NSN LWZWHB0YHQ0X <GO>}

-- The U.K. is home to this year’s best performing government bond market as investors seek a haven in nations with top credit ratings and their own monetary policy. {NSN LWZA9C07SXKX <GO>}

Metals News:

-- Copper stockpiles at the Shanghai Futures Exchange-monitored warehouses rose 10,936 metric tons to 93,219 tons this week, bourse data showed. {NSN LX0AEF6JTSEF <GO>}

-- Striking workers at Freeport-McMoRan Copper & Gold Inc.’s Indonesian unit will gradually return to the Grasberg mine in Papua starting next week and are expected to resume full work by Jan. 20, a union official said. {NSN LX040J0YHQ0X <GO>}

-- Alcoa Inc. was accused of using a middleman to bribe officials at Bahrain’s state-owned aluminum producer to reap more than $400 million in illegal profit, according to new claims filed in a racketeering lawsuit. {NSN LWZYNW6S9729 <GO>}

-- The weakest growth in demand in at least a decade for shipments of iron ore, the second-biggest commodity cargo after crude oil, means rates for the largest vessels will plunge to the lowest level since 2002. {NSN LWZ7AJ0D9L35 <GO>}

-- Gold imports estimated at 35 to 38 metric tons, State Bank of Vietnam publication reports, citing Le Thi Minh Thuy, head of service and trading statistics dept at the General Statistics Office. {NSN LWZVK66KLVR4 <GO>}

Metals Prices:

--Editors: Claudia Carpenter, Maria Kolesnikova

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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