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10 months ago
METALS-London copper slips as China holiday crimps demand
October 6, 2016 / 1:57 AM / 10 months ago

METALS-London copper slips as China holiday crimps demand

* China steps to cool property market may dampen copper demand

* German industrial orders rise higher than expected in Aug (Adds detail, updates prices)

By Melanie Burton

MELBOURNE, Oct 6 (Reuters) - London copper slipped on Thursday in very low volumes as a stronger dollar weighed on commodities and a week-long holiday in China drained the market of direction.

Trade was expected to stay subdued until mainland China markets reopen on Monday. In the meantime, prices have been buffeted by a resurgent dollar, while China's steps to cool its overheated property market may also temper a nascent copper revival, said Argonaut Securities in a report.

"In China, cooling measures on the property markets may dampen demand for white goods and construction (which) account for 15 percent and 10 percent of China's total copper demand," it said.

China's southern megacities of Guangzhou and Shenzhen are the latest centres to impose new measures to cool their overheated real estate markets, including higher mortgage downpayments and home purchase restrictions.

Three-month copper on the London Metal Exchange had edged down 0.4 percent to $4,781.50 a tonne by 0703 GMT, having closed the previous session little changed. Prices have found a floor around the $4,720-$4,750 in place since mid-September.

Volumes across base metals were very low at around 3000 lots of turnover. LME zinc and aluminium were more heavily traded than copper, trading flat and down 0.5 percent.

Chinese markets are closed this week for the National Day holiday.

In news, strong demand from euro zone countries and domestic customers drove a bigger-than-expected rise in German industrial orders in August, suggesting factories will contribute to growth in Europe's economic powerhouse in coming months.

From the U.S., evidence that the so-called natural rate of interest has fallen to low levels could mean the economy is stuck in a low-growth rut that could prove hard to escape, Federal Reserve Vice Chair Stanley Fischer said on Wednesday.

In metals news, Chile's Collahuasi mine, one of the largest copper deposits in the world, told Reuters on Wednesday it had launched a large power tender and a source said it had a particular interest in non-conventional renewable energy.

A U.S. federal judge on Wednesday dismissed nationwide litigation by aluminum purchasers who accused banks and commodity companies of conspiring to drive up the metal's prices by reducing supply, forcing them to overpay.

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

Reporting by Melanie Burton; Editing Richard Pullin and Amrutha Gayathri

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