METALS-Copper rises on Greek debt deal, dollar limits gains
* Dollar rises on U.S. consumer confidence data, euro falls * China approves construction of subway projects worth $7.87 bln * U.S. business spending plans gauge rebounds By Silvia Antonioli LONDON, Nov 27 (Reuters) - Copper rose on Tuesday after an agreement by international lenders to reduce Greece's debt lifted investor sentiment, although gains were limited as the dollar advanced on data showing U.S. consumer confidence at a four-and-a-half-year high. After 12 hours of talks, international lenders agreed on a package of measures to reduce Greece's debt, paving the way for the release of urgently needed aid loans. "It is certainly a positive development that Greece finally can receive this package as far as base metals are concerned," VTB Capital analyst Andrey Kryuchenkov said. "A Greek deal however was mostly priced in. Most people expected a positive outcome. That is why the (metals) market has not moved up that much." Benchmark copper on the London Metal Exchange, untraded at the close, was last bid at $7,806.5, up from a close of $7,780 on Monday. It hit a session high of $7,828.75, its highest since Nov. 2. The metal, used in power and construction, has risen by almost 3 percent in the last two weeks helped by data from top metal consumer China and the United States pointing to an improving economic picture. U.S. consumer confidence rose to a four-and-a-half-year high in November as consumers became more optimistic about the outlook for the economy, according to a private sector report. While a gauge of planned U.S. business spending increased by the most in five months in October, a fourth month of decline in shipments underscored the damage that fears of tighter fiscal policy next year are inflicting on the economy. The dollar rose after the U.S. consumer confidence data, and the euro retreated from a one month high as the deal to rescue Greece was offset by concerns about the broader euro zone. A stronger dollar makes metals priced in the currency more expensive for holders of other currencies. "Growing expectations of an agreement on the new tranche of funds for Greece, together with signs of economic improvement in the U.S. and China...have pushed investors to bet on cyclical assets such as base metals in the last few days," T-Commodity consultant Gianclaudio Torlizzi said in a research note. CHINA SUBWAY BOOST Improving prospects for metals demand, China approved construction of two city subway projects worth 49 billion yuan ($7.87 billion), which add to the list of recent railway project approvals aimed at boosting growth in the world's second biggest economy. China is the world's top consumer of copper, used widely in the construction and power industries. But expectations of raising copper supply kept prices in check. Peru's copper output rose 9.58 percent in September from a year earlier to 113,615 tonnes. Chile's Codelco, the world's top copper producer, reduced the premiums it will charge to ship metal to clients in China in 2013 by up to $12 a tonne, on expectations of rising global supply. Three-month aluminium closed at $2,009 per tonne from a last bid of $1,999.50 on Monday and lead closed at $2,213 from a close of $2,183. Three-month tin closed at $21,200 from $20,825 on Monday, zinc at $1,993 from $1,982 and nickel at $16,930 from $16,455. Indonesia's nickel ore exports recovered in October, as top buyer China stocked up ahead of winter and more miners resumed production after meeting tough government rules that hit shipments this year from the world's top exporter of the metal. Metal Prices at 1733 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Pct Move End 2011 Ytd Pct move COMEX Cu 353.25 -0.40 -0.11 344.75 2.47 LME Alum 2005.25 22.25 +1.12 2020.00 -0.73 LME Cu 7787.25 7.25 +0.09 7600.00 2.46 LME Lead 2205.25 22.25 +1.02 2034.00 8.42 LME Nickel 16870.00 415.00 +2.52 18650.00 -9.54 LME Tin 21170.00 345.00 +1.66 19200.00 10.26 LME Zinc 1986.50 4.50 +0.23 1845.00 7.67 SHFE Alu 15395.00 25.00 +0.16 15845.00 -2.84 SHFE Cu* 56240.00 0.00 +0.00 55360.00 1.59 SHFE Zin 15155.00 15.00 +0.10 14795.00 2.43 ** 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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