METALS-Copper slips from 1-month high as investors take profits

Tue Jul 23, 2013 3:32am EDT

* China bonded copper premiums at $170 -$190-Shmet
    * China local copper trades at 60 CNY premium to front month
ShFE
    * Coming up: euro zone consumer confidence at 1400 GMT


    By Melanie Burton
    SINGAPORE, July 23 (Reuters) - London copper slipped on
Tuesday as traders took profits from a one-month peak hit the
session before, but steady buying from top consumer China kept a
floor under prices.
    China's central bank removed controls on bank lending rates,
effective Saturday, in a move which was seen as signalling the
new leadership's determination to push market-oriented reforms
and helped to fuel a rally on Monday. 
    "It's more symbolic than having a real impact ... but
sentiment-wise it did have impact," said analyst Dominic
Schnider at UBS Wealth Management in Singapore.  
    "Still, the underlying story hasn't changed. It's a
sell-the-rallies market because in the second half we don't
expect a re-acceleration of China and instead we may be facing
disappointment."
    Three-month copper on the London Metal Exchange shed
0.63 percent to trade at $6,984.75 a tonne at 0703 GMT.
   Copper on Monday reached its highest level since June 18 at
$7,053 a tonne. 
    The most-traded November copper contract on the Shanghai
Futures Exchange climbed 0.80 percent to 50,580 yuan
($8,200) a tonne. 
    China remains committed to steering its economy towards
consumption as the main growth driver, and away from investment
and exports, and will fine-tune policies to deal with any
prolonged slowdown, a government official said on
Monday. 
    Reflecting healthy demand from China's physical market, the
premium for local copper cathode against the August front-month
ShFE futures contract climbed to around 63 yuan on
Monday, the highest in around one month.
    Also, premiums for copper held in China's bonded zones are
trading at $170-$190 above LME, according to Chinese price
provider Shmet (). That is steady from last
week, but down from 4-year highs of $210 seen in late June.
    In industry news that could impact banks with stakes in
storage, MillerCoors LLC has urged U.S. lawmakers and regulators
to press for greater regulatory oversight of the London Metal
Exchange, the world's largest metal market, after years of
inflated aluminium prices that have cost the industry billions
of dollars.   
   PRICES    
  Base metals prices at 0703 GMT                                                     
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            6984.75    -44.25     -0.63    -11.91
  SHFE CU FUT NOV3    50260        80     +0.16    -12.86
  HG COPPER SEP3     3.17     -0.02     -0.49    -99.13
  LME Alum          1845.50     -2.50     -0.14    -10.89
  SHFE AL FUT NOV3    14405        35     +0.24     -6.13
  LME Zinc          1874.25     -2.75     -0.15     -9.17
  SHFE ZN FUT NOV3    14630      -915     -5.89     -5.89
  LME Nickel       14101.00     31.00     +0.22    -17.80
  LME Lead          2056.00      2.50     +0.12    -12.14
  SHFE PB FUT      13960.00     10.00     +0.07     -8.46
  LME Tin          19459.00      9.00     +0.05    -16.84
  LME/Shanghai arb^    -300                                                          
                                                                                     
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
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