June 5, 2012 / 5:22 AM / 5 years ago

METALS-NY copper slips as euro zone PMIs spur growth fear

 * New York copper futures end lower for 5th straight day
 * Macroeconomic fears spur erosion of risk appetite
 * G7 finance chiefs hold emergency call, take no action
 * Coming up: U.S. Federal Reserve's Beige Book on Wednesday

 (Rewrites, adds NEW YORK dateline, updates with New York prices, adds graphic
and comments)	
 By Chris Kelly and Carrie Ho	
 NEW YORK/SHANGHAI, June 5 (Reuters) - Copper prices in New York fell for a
fifth straight day o n Tuesday after a series of declining business surveys
across Europe underscored a bleaker outlook for the global economy and
industrial metal demand.	
 The euro zone's private-sector economy shrank in May at the fastest pace in
nearly three years, purchasing managers indexes (PMIs) showed. The data
underlined the urgency behind emergency talks held on T uesday among finance
chiefs from the Group of Seven industrialized powers aimed at stemming the
currency bloc's escalating debt crisis. 	
 Spain said credit markets were closing to the euro zone's fourth-biggest
economy. 	
 "There's a lot of uncertainty and the uncertainty is engendering a slowdown
in business," said Jason Schenker, president of Prestige Economics, LLC in
Austin, Texas.	
 "The first place you see a slowing in business is in the PMIs ... it's
important to take note, and clearly the copper market is responding."	
 COMEX copper for July delivery shed 1.80 cents to settle at $3.2890
per lb, after dealing between $3.2780 and $3.3515.	
 On Monday, it fell to its lowest since last October at $3.2380.	
 COMEX copper volumes were light on Tuesday with just over 59,000 lots traded
late in New York business, down more than 20 percent from the 30-day average,
according to preliminary Thomson Reuters data.	
 Overseas markets held up better than New York.	
 The most-active September copper contract on the Shanghai Futures Exchange
 closed 1.4 percent higher at 53,490 yuan ($8,400) a tonne, after
hitting a 2012 low of 52,330 yuan on M onday.	
 London copper was not traded as the London Metal Exchange is closed for a
public holiday o n Tuesday. Markets will reopen o n Wednesday.	
 "Unless more bad news comes out of the meetings on the euro zone, we should
see support for Shanghai copper at 52,000 yuan for a while, with the upside
capped by strong resistance at 55,000-56,000 yuan," Orient Futures derivatives
director Andy Du said.	
 Europe's ailing finances have triggered a broad selloff in riskier assets,
with copper also hit by a decline in economic growth in top copper consumer
China and a faltering U.S. economic recovery.	
 But the vast U.S. services sector grew at a slightly faster pace last month
as a gauge of new orders improved, and China's fledgling services sector
expanded at the fastest pace in 19 months.	
  	
 Some traders, however, said the disappointing data may nudge politicians to
embark on measures to stimulate their economies, which should boost demand for
raw materials such as copper. 	
 China had announced a slew of measures to boost economic growth, including
fast-tracking infrastructure projects and subsidising purchases of vehicles and
household appliances in some regions.	
 Traders said they expect the measures to revive copper demand, which remains
sluggish in the second quarter, the traditional peak demand season for the
metal. 	
 "The order books of copper's downstream industries will stay weak until at
least two months later when the effects of Beijing's spending programmes start
to trickle in," said Yang Changhua, an analyst with state-backed research firm
Antaike.	
 In other news, Rio Tinto Alcan has not scheduled any new talks to end a
six-month lockout of unionized workers at its Alma aluminum smelter in northern
Quebec -- a work stoppage that has cut output at the plant by two-thirds, a
spokesman told Reuters in an email on Tu esday. 	
 	
 Metal Prices at 1739 GMT
                                                               
  Metal            Last      Change  Pct Move   End 2011   Ytd Pct
                                                           move
  COMEX Cu       329.65       -1.05     -0.32     343.60     -4.06
  LME Alum      1972.50      -22.50     -1.13    2020.00     -2.35
  LME Cu        7361.00      -64.00     -0.86    7600.00     -3.14
  LME Lead      1900.00      -21.00     -1.09    2035.00     -6.63
  LME Nickel   16095.00     -135.00     -0.83   18710.00    -13.98
  LME Tin      19390.00     -210.00     -1.07   19200.00      0.99
  LME Zinc      1890.00       19.00     +1.02    1845.00      2.44
  SHFE Alu     15925.00       65.00     +0.41   15845.00      0.50
  SHFE Cu*     53790.00      690.00     +1.30   55360.00     -2.84
  SHFE Zin     14675.00      165.00     +1.14   14795.00     -0.81
 ** Benchmark month for COMEX copper
 * 3rd contract month for SHFE AL, CU and ZN
 SHFE ZN began trading on 26/3/07
 	
	
 (Editing by Miral Fahmy and Dale Hudson)	
 	
 

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