Thursday, February 15, 2007
Oil
Oil prices finish little changedNEW YORK (AP) - Oil prices finished little changed Thursday, paring an earlier drop of more than $1 a barrel prompted by expectations for warmer weather in the U.S. Northeast, a major consumer of heating oil.Light, sweet crude for March delivery lost a penny to settle at $57.99 a barrel on the New York Mercantile Exchange.Brent crude at London's ICE Futures exchange rose 17 cents to close at $57.60 a barrel.With little breaking news to spark action in either direction Thursday, analysts said the market weighed a a forecast for warmer weather and continued to mull over inventory data from a day earlier.The U.S. National Oceanic and Atmospheric Administration said it expects above-normal temperatures next week to end a spate of freezing weather in the Northeast, which accounts for 80 percent of the nation's heating oil demand. But the bitter cold of recent weeks hasn't resulted in as sharp a drawdown of heating oil stockpiles as market analysts expected.Oil prices tumbled more than $1 on Wednesday after the Energy Information Administration reported that distillate fuel stocks -- which include diesel fuel and heating oil -- fell by 3 million barrels last week. Analysts had expected a bigger pull of 4.3 million barrels, according to a survey by Dow Jones Newswires."With less than six weeks left to go until spring begins, the winter window is rapidly closing in on the bulls," which could pressure crude prices closer to $50 than $60 a barrel, said Man Financial analyst Edward Meir, in a report.Except for a bounce higher on Tuesday, oil prices have been on the decline all week.The day's earlier drop as low as $56.65 a barrel was due in part to some liquidation of the March crude oil contract ahead of Tuesday's upcoming expiration, said Tim Evans, an energy analyst with Citigroup Futures Research.Otherwise, it was a "pretty dull" trading day, he said.The market stemmed its earlier losses on an indicator of increased demand, as the Organization of Petroleum Exporting Countries revised up its estimate how much supply from OPEC will be needed this year by 150,000 barrels per day to 30.25 million barrels per day, according to a Dow Jones Newswires report Thursday.OPEC oil exports in the four weeks ending March 3 are seen falling 160,000 barrels per day from a month ago, according to a report by tanker-tracking consultants Oil Movements.The report got a mixed reaction from traders, Evans said. The bears maintained that it still indicates poor compliance with OPEC's promised production cuts, agreed upon last fall.Evans took the bullish stance: "It's still more barrels being taken out of the market," he said. "At some point OPEC production will decline to the point where it does pinch."Elsewhere, an EIA report on natural gas inventories for the week ended Feb. 9 showed a withdrawal of 259 billion cubic feet from underground storage -- a substantial drawdown but one that leaves stocks still well above the five-year average for this time of year.Nymex natural gas prices rose 5.1 cents to $7.292 per 1,000 cubic feet, while heating oil futures fell about a penny to $1.6271 a gallon. Gasoline futures dipped 1.9 cents to settle at $1.5972 a gallon.
Oil
BULLET: OIL: NYMEX March light sweet crude oil futures at....OIL: NYMEX March light sweet crude oil futures closed at $57.99 per barrel, down from Wednesday's settlement at $58.00 and Tuesday's settlement at $59.06. The March contract will terminate February 20 (next Tues) and then April will become the front month.
LME REVIEW
LONDON (Dow Jones)-- London Metal Exchange tin and nickel surged to fresh record highs Thursday driven by supply concerns and low inventories, with traders growing wary of possible profit-taking at such high levels.
Roughly 20 minutes ahead of the London afternoon kerb, three-month nickel rose more than 2.5% to a record high of $39,350 a metric ton due to options-related short-covering, said a broker. The metal jumped over 4% to a PM kerb of $39,500/ton from Wednesday.
The sudden jump built upon earlier strength triggered by a large cancelation in warrants. Canceled warrants - or material accounted for and to be drawn down at a later date - maintained the recent large figure at 52% Thursday following Wednesday's 54%, and leaving less than one day's worth of world nickel consumption.
Meanwhile, three-month tin jumped to a record high of $13,200 a ton Thursday before retreating to a PM kerb of $13,075/ton. Supply uncertainties over key producers Indonesia and Bolivia continues to provide underlying price support.
Indonesia recently shut down its private mining and smelting operations on Bangka island, where the country's largest tin reserve is located.
Indonesia's PT Koba Tin - a key industry player - declared force majeure on its tin shipments Monday, after police arrested three senior officials Saturday and sealed the company's warehouses and an accounting section in Bangka-Belitung province. However, the company said it is still allowed to mine and smelt tin from Bangka-Belitung while it is under police investigation.
At the same time, uncertainty over the fate of Bolivia's Vinto smelter since it was seized from Switzerland's Glencore International AG and renationalized added to upside price momentum.
In other metals, three-month copper pushed sharply higher due to technical-related buying and short covering mainly from Chinese buyers, said a broker in London. Stronger buying interest from China and expectations of more to come have also added to bullish market sentiment, the broker said.
Copper jumped roughly 2% to a PM kerb of $5,840/ton from Wednesday.
As an exception, three-month aluminum fell roughly 0.8% to a PM kerb of $2,814/ton.
"Market participants continued in their attempt to push prices through the $2,850/ton key level but strong technical selling kept prices from moving above that level," said one aluminum trader in New York. If $2,850/ton is broken, prices will push up to $3,000/ton in a hurry, he said, adding, however, that the next level of support is near $2,740/ton.
Prices in dollar a metric ton.
3 Months Metal Bid-Ask Change from
Wednesday PM kerb
Copper 5840.0-5850.0 Up 120
Lead 1755.0-1760.0 Up 55
Zinc 3425.0-3430.0 Up 115
Aluminum 2814.0-2815.0 Dn 14
Nickel 39500.0-39600.0 Up 2025
Tin 13075.0-13100.0 Up 380
Aluminum Alloy N/A - N/A N/A
Aluminum Alloy 2200.0-2201.0 Unch
Roughly 20 minutes ahead of the London afternoon kerb, three-month nickel rose more than 2.5% to a record high of $39,350 a metric ton due to options-related short-covering, said a broker. The metal jumped over 4% to a PM kerb of $39,500/ton from Wednesday.
The sudden jump built upon earlier strength triggered by a large cancelation in warrants. Canceled warrants - or material accounted for and to be drawn down at a later date - maintained the recent large figure at 52% Thursday following Wednesday's 54%, and leaving less than one day's worth of world nickel consumption.
Meanwhile, three-month tin jumped to a record high of $13,200 a ton Thursday before retreating to a PM kerb of $13,075/ton. Supply uncertainties over key producers Indonesia and Bolivia continues to provide underlying price support.
Indonesia recently shut down its private mining and smelting operations on Bangka island, where the country's largest tin reserve is located.
Indonesia's PT Koba Tin - a key industry player - declared force majeure on its tin shipments Monday, after police arrested three senior officials Saturday and sealed the company's warehouses and an accounting section in Bangka-Belitung province. However, the company said it is still allowed to mine and smelt tin from Bangka-Belitung while it is under police investigation.
At the same time, uncertainty over the fate of Bolivia's Vinto smelter since it was seized from Switzerland's Glencore International AG and renationalized added to upside price momentum.
In other metals, three-month copper pushed sharply higher due to technical-related buying and short covering mainly from Chinese buyers, said a broker in London. Stronger buying interest from China and expectations of more to come have also added to bullish market sentiment, the broker said.
Copper jumped roughly 2% to a PM kerb of $5,840/ton from Wednesday.
As an exception, three-month aluminum fell roughly 0.8% to a PM kerb of $2,814/ton.
"Market participants continued in their attempt to push prices through the $2,850/ton key level but strong technical selling kept prices from moving above that level," said one aluminum trader in New York. If $2,850/ton is broken, prices will push up to $3,000/ton in a hurry, he said, adding, however, that the next level of support is near $2,740/ton.
Prices in dollar a metric ton.
3 Months Metal Bid-Ask Change from
Wednesday PM kerb
Copper 5840.0-5850.0 Up 120
Lead 1755.0-1760.0 Up 55
Zinc 3425.0-3430.0 Up 115
Aluminum 2814.0-2815.0 Dn 14
Nickel 39500.0-39600.0 Up 2025
Tin 13075.0-13100.0 Up 380
Aluminum Alloy N/A - N/A N/A
Aluminum Alloy 2200.0-2201.0 Unch
NAT GAS REPORT
BULLET: Energy: US EIA nat gas data for Feb 9: "Working gas..Energy: US EIA nat gas data for Feb 9: "Working gas in storage was 2,088 Bcf as of Friday, February 9, 2007, according to EIA estimates. This represents a net decline of 259 Bcf from the previous week. Stocks were 193 Bcf less than last year at this time and 268 Bcf above the 5-year average of 1,820 Bcf. In the East Region, stocks were 151 Bcf above the 5-year average following net withdrawals of 179 Bcf. Stocks in the Producing Region were 109 Bcf above the 5-year average of 567 Bcf after a net withdrawal of 68 Bcf. Stocks in the West Region were 8 Bcf above the 5-year average after a net drawdown of 12 Bcf. At 2,088 Bcf, total working gas is within the 5-year historical range.
Copper surging
DJ Comex Copper Surges On Chinese Interest, Chart-Based Factors
By Allen Sykora
Of DOW JONES NEWSWIRES
A combination of fundamental and technical influences has pushed copper futures sharply higher in early trading Thursday.
At 9:03 a.m. EST, March copper was up 10 cents to $2.6770 a pound on the Comex division of the New York Mercantile Exchange. It has peaked at $2.69, its strongest level since the $2.70 high of Jan. 11 that some analysts have cited as the next chart resistance.
"The market has been turning around technically as well as fundamentally," said a trader. "We're stopping people out. Some of it is short covering.
"Some of it is the fact that the Chinese are back in. There has been tremendous Chinese buying, apparently, in the scrap and probably the refined as well. This market seems to have found a bottom and has turned higher."
Man Financial analyst Edward Meir, in his daily research report, also pointed to improving Chinese demand. In particular, he cited data showing that China's January imports of refined copper and copper alloy were up 70% from the same month a year ago.
"Commodities are also benefiting from a positive macro environment, as evidenced by Fed Chairman Ben Bernanke's testimony (on the economy) to Congress yesterday," added Meir.
Yet another factor supporting the metal, London-based analysts have said, was short covering in the Chinese market overnight ahead of weeklong Chinese New Year celebrations next week.
By Allen Sykora
Of DOW JONES NEWSWIRES
A combination of fundamental and technical influences has pushed copper futures sharply higher in early trading Thursday.
At 9:03 a.m. EST, March copper was up 10 cents to $2.6770 a pound on the Comex division of the New York Mercantile Exchange. It has peaked at $2.69, its strongest level since the $2.70 high of Jan. 11 that some analysts have cited as the next chart resistance.
"The market has been turning around technically as well as fundamentally," said a trader. "We're stopping people out. Some of it is short covering.
"Some of it is the fact that the Chinese are back in. There has been tremendous Chinese buying, apparently, in the scrap and probably the refined as well. This market seems to have found a bottom and has turned higher."
Man Financial analyst Edward Meir, in his daily research report, also pointed to improving Chinese demand. In particular, he cited data showing that China's January imports of refined copper and copper alloy were up 70% from the same month a year ago.
"Commodities are also benefiting from a positive macro environment, as evidenced by Fed Chairman Ben Bernanke's testimony (on the economy) to Congress yesterday," added Meir.
Yet another factor supporting the metal, London-based analysts have said, was short covering in the Chinese market overnight ahead of weeklong Chinese New Year celebrations next week.
LME COPPER
DJ MARKET TALK: LME Copper Up As Chinese Buyers Cover Shorts
1337 GMT [Dow Jones] Short covering driven by mainly Chinese buyers pushes LME copper higher with the $6,000/ton level looking in sight for the first time since the start of the year, a broker notes. US dollar weakeness is also adding to the gains, he notes. LME copper trades last at $5,920/ton, up 3% on the day. (ADH)
1337 GMT [Dow Jones] Short covering driven by mainly Chinese buyers pushes LME copper higher with the $6,000/ton level looking in sight for the first time since the start of the year, a broker notes. US dollar weakeness is also adding to the gains, he notes. LME copper trades last at $5,920/ton, up 3% on the day. (ADH)
COMEX COPPER
NEW YORK (Dow Jones)--High-grade copper futures in New York are called to open 540 points higher Thursday, traders said, following a higher London copper market.
In London overnight, three-month copper traded to a high of $5,847 a metric ton. It is currently up $105 at $5,830.00.
In other markets, the dollar is trading lower while the euro is a touch higher. The Nybot U.S. dollar index is trading at 84.16 from a previous close of 84.20. The euro is at $1.3135 from a Wednesday close of $1.3129.
On the economic front, data on import prices, NY Fed Manufacturing Index and jobless claims will be released at 8:30 a.m. EST (1330 GMT). Treasury capital flows will be out at 9 a.m. EST (1400 GMT)followed by capacity utilization and industrial production at 9:15 a.m. EST (1415 GMT).
At 10 a.m. EST (1500 GMT) will be the release of the DJ-BTMU business barometer and Fed Chairman Ben Bernanke's testimony before the House Financial Services Committee on the U.S. economic outlook.
The U.S. Energy Department will release data on natural gas stocks at 10:30 a.m. EST (1530 GMT) then the Philadelphia Fed Business Index will be out at 12 p.m. EST (1700 GMT). The NAHB Housing Index will be released at 1 p.m. EST (1800 GMT).
In New York on Wednesday, Comex copper futures settled lower after the metal hit a two-week high then eased amid a lack of direction and upside momentum.
At settlement, most-active March copper is down 75 points at $2.5770 per pound. At the open, the contract dipped amid an increase in London Metal Exchange copper stocks but later hit its highest level since Jan. 29 at $2.62.
Inventories of copper in London Metal Exchange warehouses rose 450 metric tons to 215,350, authorities reported early Thursday. The most recent Comex stocks data, released late Wednesday afternoon, were down 22 short tons at 35,881.
In London overnight, three-month copper traded to a high of $5,847 a metric ton. It is currently up $105 at $5,830.00.
In other markets, the dollar is trading lower while the euro is a touch higher. The Nybot U.S. dollar index is trading at 84.16 from a previous close of 84.20. The euro is at $1.3135 from a Wednesday close of $1.3129.
On the economic front, data on import prices, NY Fed Manufacturing Index and jobless claims will be released at 8:30 a.m. EST (1330 GMT). Treasury capital flows will be out at 9 a.m. EST (1400 GMT)followed by capacity utilization and industrial production at 9:15 a.m. EST (1415 GMT).
At 10 a.m. EST (1500 GMT) will be the release of the DJ-BTMU business barometer and Fed Chairman Ben Bernanke's testimony before the House Financial Services Committee on the U.S. economic outlook.
The U.S. Energy Department will release data on natural gas stocks at 10:30 a.m. EST (1530 GMT) then the Philadelphia Fed Business Index will be out at 12 p.m. EST (1700 GMT). The NAHB Housing Index will be released at 1 p.m. EST (1800 GMT).
In New York on Wednesday, Comex copper futures settled lower after the metal hit a two-week high then eased amid a lack of direction and upside momentum.
At settlement, most-active March copper is down 75 points at $2.5770 per pound. At the open, the contract dipped amid an increase in London Metal Exchange copper stocks but later hit its highest level since Jan. 29 at $2.62.
Inventories of copper in London Metal Exchange warehouses rose 450 metric tons to 215,350, authorities reported early Thursday. The most recent Comex stocks data, released late Wednesday afternoon, were down 22 short tons at 35,881.
GOLD
NEW YORK (AP) - Demand for gold jewelry dropped sharply in 2006 in a roller coaster market that saw record price spikes, but investor appetite for gold remained robust, according to a report by the World Gold Council released Thursday.Gold jewelry demand slackened 16 percent worldwide to about 2,499 tons last year. Despite lower volume, the dollar value of all gold purchased in 2006 climbed 14 percent to $44 billion, as buyers of gold jewelry paid considerably more due to peak market prices.The price of gold settled at a 25-year high near $720 in May.George Milling-Stanley, a spokesman for the World Gold Council, called last year's market volatility "exceptional in historical terms." The price of gold has climbed $100 a year for five years, he said. But in 2006, the move from $600 to $725 took just 18 consecutive trading days."It's the volatility in the price that cuts demand off," he said.Investors weren't so easily swayed by gold's pendular price swings.Investment demand rose 7 percent last year to roughly 702 tons, according to the report, and jumped 45 percent in dollar terms to $12.36 billion. The flow of money into exchange-traded funds -- those that track a commodity or a basket of commodities -- surged 73 percent in dollar terms.All told, gold demand totaled $65.26 billion in 2006, up 22 percent from the prior year.This year, the World Gold Council said it has seen jewelry demand rebound in January, while investor interest remained positive. Milling-Stanley said even if gold continues to trade near $650 an ounce, jewelry demand could continue to rise -- as long as the market moves calmly higher."What we've seen in the last four months has been incremental rises in the price," he said. "That gives jewelry consumers time to adjust to a higher price."But if the market returns to last year's level of volatility, he said, jewelry demand could again be choked by the uncertainty.
Copper
Copper is up over 2% @ $5830. Speculators have really bought into this story of Chinese demand pick up pencilled in for the Chinese new year! The momentum being triggered by reports of a 44% increase in Jan year on year demand for copper.
OPEC
LONDON (AFX) - OPEC kept its oil demand growth forecast broadly unchanged for this year, but warned if warmer weather returns over the coming weeks, it might have to reduce its forecast going forward.OPEC said while it sees 2007 oil demand growth at 1.2 mln bpd or 1.5 pct - broadly unchanged from its prior 1.25 mln bpd forecast - it has revised down its first-quarter demand growth forecast for OECD countries by 0.1 mln bpd.It added should warm weather return to the northern hemisphere over the next couple of weeks, it may have to reduce its forecast for world oil demand growth by a further 0.2 mln bpd."Consequently, the revised figure for total world oil demand growth may only reach 1 mln bpd," said OPEC. It added this would be the case despite healthy growth in China and improved growth in the Middle East.The cartel also kept its 2006 demand growth estimate unchanged at 0.8 mln bpd or 1 pct. However, it revised down its estimate for non-OPEC supply last year by 78,000 bpd to 49.5 mln bpd.For 2007, the cartel sees non-OPEC supply averaging 50.7 mln bpd, an increase of 1.2 mln bpd over the previous year but a downward revision of 173,000 bpd from the prior forecast.
OIL
LONDON (AFX) - Oil edged up as the market recovered from a steep fall yesterday that was driven by a much smaller-than-expected decline in US heating fuel stocks.At 10.35 am, front-month Brent North Sea crude contracts for April delivery were up 50 cents at 57.93 usd a barrel. Yesterday, oil settled down 1.35 usd at 57.43 usd.Meanwhile, front-month New York light sweet crude contracts for March delivery rose 27 cents to 58.84 usd a barrel, after closing down 1.06 usd at 58.00 usd yesterday.Veronica Smart, analyst at the UK-based Energy Information Centre, said market participants might be thinking yesterday's falls were slightly overdone."Stock draws in the US which normally means prices go up," she noted, but added yesterday's declines were not as significant as people had expected.US government data released yesterday showed distillate stocks, which include heating oil, fell by 3 mln barrels last week, well short of the 4.9 mln barrel drop predicted.The data also showed a drop in crude and gasoline stocks, which went against market expectations for a rise. The drops helped temper the declines in oil prices.However, the market was hinged on the distillates number, as some players had been hoping the recent freezing temperatures in the US Northeast would have taken their toll on stock levels."With less than six weeks left to go until spring begins, the winter window is rapidly closing in on the bulls," noted Man Financial analyst Ed Meir.He added that "with OPEC acting non-committal at this stage on the issue of further cuts, we may start to see crude values come off from here to test the lower end of the 50-60 usd range they seem to be in".Saudi Arabia's oil minister, Ali al-Naimi, said Monday the cartel might keep its output levels unchanged at its mid-March meeting if current market conditions remain as they are.His comments sent oil prices sharply lower, although they recovered a day later after the International Energy Agency upped its forecast for oil demand this year, citing an expected increase in demand from China.Smart said the IEA forecast was significant, especially as it was the first time the global energy watchdog had raised its 2007 forecast.She added market participants will now be looking to the OPEC report, scheduled for release around midday today, to see if the cartel's forecasts line up with those of the IEA.
LME MIDDAY
LONDON (Dow Jones)--London Metal Exchange tin hits a new record high Thursday morning amidst a general bullish tone across all base metals, with further upside expected when the U.S. enters the market, said traders.
Tin prices jumped to $13,000 a metric ton on consumer buying and a lack of selling amid very illiquid conditions, according to an LME trader. At 1130 GMT, three-month tin traded at $12,900/ton.
Uncertainty over key producers Indonesia and Bolivia continues to provide underlying price support.
Indonesia recently shutdown its private mining and smelting operations on Bangka island, where the country's largest tin reserve is located.
Indonesia's PT Koba Tin - a key industry player - declared force majeure on its tin shipments Monday, after police arrested three senior officials Saturday and sealed the company's warehouses and an accounting section in Bangka-Belitung province.
The company said it is still allowed to mine and smelt tin from Bangka-Belitung while it is under police investigation.
Meanwhile, uncertainty over the fate of Bolivia's Vinto smelter since it was seized from Switzerland's Glencore International AG and renationalized adds to upside price momentum, an LME broker noted.
Glencore recently demanded compensation from Bolivia's government for nationalizing its tin smelter as part of President Evo Morales' declared ambition to gain greater control of the country's mineral wealth and refineries.
Since the start of the year, the smaller liquidity metal has climbed roughly 33% while stocks have decreased roughly 20%.
In other metals, three-month nickel surged to $38,400/ton at 1130 GMT, up over 2% from Wednesday triggered by a large cancelation in warrants.
Canceled warrants - or material accounted for and to be drawn down at a later date - maintained its recently large figure at 52% Thursday following Wednesday's 54%, leaving less than one day's worth of world nickel consumption.
Meanwhile, three-month aluminum rose roughly 1% to $2,852/ton at 1130 GMT amid steady technical buying as political uncertainty in Guinea continued. Guinea is a leading producer of bauxite, an essential component in producing aluminum.
Guinean President Lansana Conte has imposed martial law until Feb. 23 after days of violent protests. The demonstrations were triggered over the weekend following Conte's appointment of a close ally from his Cabinet as prime minister, a move the opposition said sidestepped a power-sharing agreement.
However, an increase in aluminum stocks by 3,725 tons to 762,775 tons Thursday capped the upside momentum. Aluminum inventories have climbed roughly 10% since the start of 2007.
Three-month copper traded at $5,840/ton at 1130 GMT, up 2% from Wednesday following momentum seen in overnight trading.
"In Asian trading on Thursday copper posted a decent bounce as traders covered short positions ahead of Chinese New Year although volumes were not really impressive," said John Reade of UBS.
Tin prices jumped to $13,000 a metric ton on consumer buying and a lack of selling amid very illiquid conditions, according to an LME trader. At 1130 GMT, three-month tin traded at $12,900/ton.
Uncertainty over key producers Indonesia and Bolivia continues to provide underlying price support.
Indonesia recently shutdown its private mining and smelting operations on Bangka island, where the country's largest tin reserve is located.
Indonesia's PT Koba Tin - a key industry player - declared force majeure on its tin shipments Monday, after police arrested three senior officials Saturday and sealed the company's warehouses and an accounting section in Bangka-Belitung province.
The company said it is still allowed to mine and smelt tin from Bangka-Belitung while it is under police investigation.
Meanwhile, uncertainty over the fate of Bolivia's Vinto smelter since it was seized from Switzerland's Glencore International AG and renationalized adds to upside price momentum, an LME broker noted.
Glencore recently demanded compensation from Bolivia's government for nationalizing its tin smelter as part of President Evo Morales' declared ambition to gain greater control of the country's mineral wealth and refineries.
Since the start of the year, the smaller liquidity metal has climbed roughly 33% while stocks have decreased roughly 20%.
In other metals, three-month nickel surged to $38,400/ton at 1130 GMT, up over 2% from Wednesday triggered by a large cancelation in warrants.
Canceled warrants - or material accounted for and to be drawn down at a later date - maintained its recently large figure at 52% Thursday following Wednesday's 54%, leaving less than one day's worth of world nickel consumption.
Meanwhile, three-month aluminum rose roughly 1% to $2,852/ton at 1130 GMT amid steady technical buying as political uncertainty in Guinea continued. Guinea is a leading producer of bauxite, an essential component in producing aluminum.
Guinean President Lansana Conte has imposed martial law until Feb. 23 after days of violent protests. The demonstrations were triggered over the weekend following Conte's appointment of a close ally from his Cabinet as prime minister, a move the opposition said sidestepped a power-sharing agreement.
However, an increase in aluminum stocks by 3,725 tons to 762,775 tons Thursday capped the upside momentum. Aluminum inventories have climbed roughly 10% since the start of 2007.
Three-month copper traded at $5,840/ton at 1130 GMT, up 2% from Wednesday following momentum seen in overnight trading.
"In Asian trading on Thursday copper posted a decent bounce as traders covered short positions ahead of Chinese New Year although volumes were not really impressive," said John Reade of UBS.
LME INVENTORY
Copper up 450 tonnes at 215,350 tonnesLead down 800 tonnes at 34,200 tonnesNickel up 66 tonnes at 3,990 tonnes Aluminium up 3,725 tonnes at 762,775 tonnesTin down 75 tonnes at 10,245 tonnesZinc down 100 tonnes at 96,975 tonnes
China copper
DJ China Copper Futures Settle Up On Pre-Holiday Short-Covering
SHANGHAI (Dow Jones)--Copper futures traded on the Shanghai Futures Exchange settled higher Thursday on short-covering as risk averse investors closed their positions ahead of the week-long holiday.
Analysts said bullish market sentiment largely due to expectations of increased Chinese buying in the coming spring will likely drive three-month London Metal Exchange copper higher during the Lunar New Year holiday.
The benchmark April 2007 contract settled CNY720 higher at CNY54,860 a metric ton, after trading between CNY54,100/ton and CNY55,390/ton.
Turnover for all Shanghai copper futures totaled 92,222 lots versus 9,214 lots Wednesday, when trading was halted after prices hit daily upper limits.
One lot equals five tons.
"SHFE copper looks much stronger than LME, but it might change after the holiday, weighed down by imports," said Li Rong, an analyst at Great Wall Futures Co.
Li said domestic cash premiums fell to zero Thursday from CNY700-CNY800 Wednesday due to lack of buyers as many have already gone on holiday.
Markets in China will be closed next week for the Chinese New Year holiday.
On the Changjiang Nonferrous Metals Trading Market, a major spot metals market in Shanghai, copper was quoted at CNY56,000-CNY56,300/ton Thursday, compared with Wednesday's CNY55,720-CNY55,920/ton.
"Looking at China, we might see price-supportive import data in coming months, but it's unwise to bet three-month LME copper prices will rise merely on Chinese buying," a trader in Shanghai said.
"It's been a bit unpredictable recently," he added, referring to LME copper futures.
Three-month LME copper fell $29 to end the late kerb Wednesday at $5,720/ton.
It was quoted higher at $5,790/ton around 0700 GMT.
Shanghai's aluminum futures settled almost unchanged. The benchmark May 2007 contract gained CN10 to settle at CNY19,700/ton.
China's futures markets are off-limits to foreign investors.
Thursday's closing prices in yuan a metric ton versus LME late kerb prices from Wednesday in dollars a metric ton:
SHANGHAI (Dow Jones)--Copper futures traded on the Shanghai Futures Exchange settled higher Thursday on short-covering as risk averse investors closed their positions ahead of the week-long holiday.
Analysts said bullish market sentiment largely due to expectations of increased Chinese buying in the coming spring will likely drive three-month London Metal Exchange copper higher during the Lunar New Year holiday.
The benchmark April 2007 contract settled CNY720 higher at CNY54,860 a metric ton, after trading between CNY54,100/ton and CNY55,390/ton.
Turnover for all Shanghai copper futures totaled 92,222 lots versus 9,214 lots Wednesday, when trading was halted after prices hit daily upper limits.
One lot equals five tons.
"SHFE copper looks much stronger than LME, but it might change after the holiday, weighed down by imports," said Li Rong, an analyst at Great Wall Futures Co.
Li said domestic cash premiums fell to zero Thursday from CNY700-CNY800 Wednesday due to lack of buyers as many have already gone on holiday.
Markets in China will be closed next week for the Chinese New Year holiday.
On the Changjiang Nonferrous Metals Trading Market, a major spot metals market in Shanghai, copper was quoted at CNY56,000-CNY56,300/ton Thursday, compared with Wednesday's CNY55,720-CNY55,920/ton.
"Looking at China, we might see price-supportive import data in coming months, but it's unwise to bet three-month LME copper prices will rise merely on Chinese buying," a trader in Shanghai said.
"It's been a bit unpredictable recently," he added, referring to LME copper futures.
Three-month LME copper fell $29 to end the late kerb Wednesday at $5,720/ton.
It was quoted higher at $5,790/ton around 0700 GMT.
Shanghai's aluminum futures settled almost unchanged. The benchmark May 2007 contract gained CN10 to settle at CNY19,700/ton.
China's futures markets are off-limits to foreign investors.
Thursday's closing prices in yuan a metric ton versus LME late kerb prices from Wednesday in dollars a metric ton:
Copper
0437 GMT [Dow Jones] LME copper bullish in short term, likely to target $6,000/ton, as recent China copper import data supportive, market expecting Chinese buying to strengthen after Lunar New Year, stock levels in Asia to become "very tight," says trader at Japanese house. But adds LME 3-month copper needs to break above $6,000 to confirm uptrend, trigger fresh short-covering; "if it's below $6,000 at the end of the Lunar New Year, it will return to below $5,500." LME 3-month copper +$60 vs London PM kerb at $5,780/ton, after falling $29 overnight on jump in LME copper stocks. (MWL)
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