Bloomberg News

Copper May Rise on China, U.S. Manufacturing Gains: LME Preview

February 01, 2012

Feb. 1 (Bloomberg) -- Copper may advance for the first time in four days in London as manufacturing indexes rose in China in January and may have accelerated in the U.S., boosting the demand outlook in the two biggest consumers of the metal.

Market News:

-- Chinese manufacturing indexes rose in January as the world’s second-biggest economy withstood weaker exports driven by Europe’s debt crisis and a government-induced property slowdown. NSN LYP9J31A74E9 <GO>

-- Asian stocks fell, erasing an early rally, after companies cut profit forecasts and data showed weakening economic growth across the region. The euro weakened, while European equity futures advanced as Greece struggles to conclude debt-swap talks with creditors by the end of this week. NSN LYPE896K50Y4 <GO>

-- Bondholders negotiating a debt swap with Greece may get a sweetener tied to a revival in economic growth that would ease the impact of accepting a lower interest rate on the new bonds, people with knowledge of the talks said. NSN LYOIPK1A1I4H <GO>

-- Manufacturing probably grew at a faster pace in January, a sign the industry will lead the U.S. expansion early this year, economists said before today’s report. NSN LYOMIL0D9L35 <GO>

-- European Central Bank President Mario Draghi has pumped less stimulus into the economy he oversees than his Federal Reserve counterpart Ben S. Bernanke, bolstering the euro at levels that won’t revive growth by boosting exports. NSN LYOBKT0D9L35 <GO>

Metals News:

-- Antofagasta Plc, the copper producer controlled by Chile’s Luksic family, exceeded its 2011 output target after boosting volumes from its Los Pelambres mine and starting the Esperanza project. NSN LYPCSH6S972D <GO>

-- A global aluminum surplus may shrink to the lowest level since 2007 as major producers cut output amid soaring energy costs and sluggish demand, said Japan’s third-largest trading house. NSN LYPE0W0UQVI9 <GO>

-- Pan Pacific Copper Co., Japan’s largest producer, plans to restart its Saganoseki smelter on Feb. 14, more than a month after a fire halted operations. NSN LYOY2X0UQVI9 <GO>

-- An exchange in Indonesia, the world’s largest tin exporter, plans to start trading a physical contract today to try to create an alternative to the benchmark on the London Metal Exchange after twice delaying the initiative. NSN LYP1PW0D9L35 <GO>

-- U.S. and Canadian aluminum shipments rose 7.1 percent last year to 20 billion pounds, the Aluminum Association said. NSN LYPE7H6KLVR4 <GO>

-- Steel demand worldwide is growing slower than forecast, eroding profit at producers including ArcelorMittal and Tata Steel Ltd. and forcing investors to revise their 2012 outlook for the $430 billion industry. NSN LYODHQ1A1I4J <GO>

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