Bloomberg News

Copper May Decline on Concern Over China Growth: LME Preview

February 07, 2012

Feb. 7 (Bloomberg) -- Copper may fall for a second day in London after Chinese authorities warned the country’s industrial output is likely to slow this quarter, raising concern about demand outlook for the biggest metals user.

Market News:

-- Greek Prime Minister Lucas Papademos plans today to discuss with the nation’s political leaders the implementation of additional fiscal measures needed to secure a second European Union-led bailout. NSN LZ01YW6K50Y4 <GO>

-- Glencore International Plc, the world’s largest publicly traded commodities supplier, agreed to buy Xstrata Plc for 39.1 billion pounds ($62 billion) in the biggest mining takeover. NSN LZ0HRF6K50Y1 <GO>

-- China’s stocks dropped the most in eight weeks on concern economic growth is slowing, while the euro fell as Greece sought to secure rescue funds. Australia’s dollar rose after the central bank unexpectedly kept interest rates unchanged. NSN LZ0GBV6TTDS2 <GO>

-- China’s industrial output growth is likely to slow this quarter as the world economy cools and Europe’s debt crisis worsens, the Ministry of Industry and Information Technology said. NSN LZ0GJI1A74E9 <GO>

-- UBS AG, Switzerland’s biggest bank, said fourth-quarter profit dropped 76 percent after its investment bank reported a second consecutive quarterly loss. NSN LZ0G6G07SXKX <GO>

-- Australia unexpectedly kept interest rates unchanged as two cuts late last year help the economy weather Europe’s debt crisis, sending the nation’s currency soaring to a six-month high. NSN LZ0HBE0D9L35 <GO>

Metals News:

-- Russia will cut its nickel export duty to $1,245.50 a metric ton from March 5 after a price decline, the government said today on its website. NSN LZ0I2J6TTDS0 <GO>

-- Declining U.S. copper stockpiles may show traders are securing the metal in anticipation of a revival in Chinese demand after Asian and European inventories closer to the largest buyer shrank, Natixis Commodity Markets Ltd. said. NSN LYZGN80UQVI9 <GO>

-- ArcelorMittal, the world’s biggest steelmaker, posted fourth- quarter profit that was in line with analyst estimates and forecast an improvement in the first half. NSN LZ0EZF07SXKX <GO>

-- Xstrata Plc, the largest exporter of power-station coal, said 2011 earnings before interest, tax, depreciation and amortization rose to $11.6 billion from $10.4 billion a year earlier. That compares with the $11.5 billion median estimate of analysts surveyed by Bloomberg. NSN LZ0GU06S972D <GO>

-- Aluminum will be in shortage in 2014 for the first time since at least 2005 as copper moves into surplus, Barclays Capital said. NSN LZ0EOH6KLVRA <GO>

-- Rio Tinto Group options traders are the most bearish in more than a year, speculating a 47 percent rally since October has gone too far after analysts cut profit forecasts to the lowest level in 15 months. NSN LYZZX46K50XU <GO>

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