* U.S. payrolls rise by 146,000 in November * Dollar gains against euro on German growth downgrade * China industrial production figures due at weekend By Silvia Antonioli and Maytaal Angel LONDON, Dec 7 Copper rose on Friday after better-than-forecast U.S. jobs data pointed to improved growth prospects for the world's largest economy, though gains were limited after the Bundesbank cut its outlook for Germany's growth, boosting the dollar. U.S. non-farm employment increased by 146,000 jobs last month, defying expectations of a sharp pullback, while the unemployment rate dipped to 7.7 percent, though that occurred largely because many Americans gave up the hunt for work. Keeping metals under pressure, the euro fell to a nine-day low against the dollar after the Bundesbank announcement. A stronger dollar makes dollar-priced metals more expensive for European and other non-U.S. investors. Benchmark copper on the London Metal Exchange rose to a session high of $8,065.25 a tonne after the payrolls data and ended up at $8,035 a tonne from $8,000 at the close on Thursday. Copper has gained around 4 percent since the start of November, mostly based on the view that the economy in China, which consumes about 40 percent of the world's copper, bottomed in the third quarter and should improve going forward. "The U.S. economy will be positive for copper but at the margins. Through to the year-end it's possible we're going to continue (rising), but I expect it to pull back next year. China is doing a bit better, but it's no longer double-digit growth," Justin Lennon of Mitsui Bussan Commodities said. Chinese industrial production figures due at the weekend and a meeting of the U.S. Federal Open Market Committee (FOMC) next week to discuss interest rates will also be scrutinised for signs of economic recovery and future policy. In the meantime, investors remained anxious about negotiations by U.S. political leaders to head off steep tax hikes and spending cuts that could tip the economy into recession, with the deadline about three weeks away. The task of avoiding the so-called "fiscal cliff" was down to talks between Republican House Speaker John A. Boehner and President Barack Obama, according to Capitol Hill aides. Sentiment in the copper market was also affected by data showing that Americans' outlook on the economy and their finances took a turn for the worse in early December due likely to anxiety about the potential for higher taxes and spending cuts. REFINING CHARGES Traders were busy putting together term copper shipment deals for 2013, with Chinese smelters and miners likely to forge agreements of $70 dollars per tonne and 7 cents per pound for treatment and refining charges (TC/RC), Macquarie said in a note. China's smelters received term 2012 TC/RC at $60 and 6 cents from BHP for Escondida concentrates and $63.5 and 6.35 cents from Freeport, both seen as benchmarks in Asia. Global miners pay TC/RC to smelters to convert concentrate into refined metal, and the charges are deducted from the sale price based on LME copper prices. Higher charges are typically seen when concentrate supply rises. Three-month nickel closed up at $17,225 a tonne from a last bid of $17,175 on Thursday. Three-month tin ended down at $21,775 a tonne from a close of $21,925, while zinc closed little changed to $2,028 a tonne f rom $2,030 a t T h ursday's close. Lead ended at $2,215 a tonne from a last bid of $2,214, and aluminium closed at $2,089 a tonne from a last offer on Thursday of $2,085. Metal Prices at 1708 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Pct Move End 2009 Ytd Pct move COMEX Cu 365.45 1.95 +0.54 334.65 9.20 LME Alum 2093.00 -12.00 -0.57 2230.00 -6.14 LME Cu 8034.50 34.50 +0.43 7375.00 8.94 LME Lead 2214.00 -25.00 -1.12 2432.00 -8.96 LME Nickel 17225.00 -325.00 -1.85 18525.00 -7.02 LME Tin 21750.00 -175.00 -0.80 16950.00 28.32 LME Zinc 2027.50 -2.50 -0.12 2560.00 -20.80 SHFE Alu 15325.00 -5.00 -0.03 17160.00 -10.69 SHFE Cu* 57370.00 30.00 +0.05 59900.00 -4.22 SHFE Zin 15350.00 65.00 +0.43 21195.00 -27.58 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07
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