* Dollar gains against basket of currencies
* China pledges to let markets play decisive role in economy
* Dallas Fed president says stimulus can't go on forever
By Harpreet Bhal and Maytaal Angel
LONDON, Nov 12 Copper slid on Tuesday as the
dollar gained on expectations the U.S. Federal Reserve will curb
stimulus measures sooner than previously expected and as
investors took little comfort from China's 10-year economic
Three-month copper on the London Metal Exchange
ended at $7,120 a tonne, down 0.74 percent from a close of
$7,173 on Monday.
The dollar rose against a basket of currencies on
growing expectations the Fed will soon scale back monetary
stimulus following above-forecast U.S. jobs data last week.
Dallas Fed President Richard Fisher said in an interview
with CNBC cable television that the Federal Reserve's monetary
stimulus program cannot continue forever.
"The market is still viewing the Fed as possibly wanting to
taper stimulus sooner rather than later, and the bet is now on
whether the Fed will move in December after consensus-beating
economic data," Robin Bhar, an analyst at Societe Generale,
"This is bolstering the dollar, and it seems to be a major
factor (that is weighing on metals)."
Ultra-loose monetary policy adopted by central banks around
the world in the past few years has drawn investors to
commodities as an alternative to interest-bearing assets.
In China, leaders pledged to let markets play a decisive
role in the economy as they unveiled a reform agenda for the
next decade, looking to secure new drivers of future growth.
"In our view, 'reform' in a controlled economy like China's
is code for tighter credit, higher interest rates, lower overall
debt levels, a stronger currency, rising local energy prices and
a trimming back of government support for state-owned
enterprises," INTL FCStone said in a note.
China is the world's top copper consumer, accounting for
around 40 percent of demand for the refined metal, which is used
in power and construction.
Copper prices fell 1 percent last week, their biggest weekly
fall since mid-September, but were still within a $7,000-7,420
band that has held since early August, weighed down by
expectations of a growing surplus in the market.
Indicating better supply, BHP Billiton has
offered treatment and refining charges of $80 per tonne and 8
cents a pound, respectively, to Chinese copper smelters for
shipments of concentrates in 2014.
In other metals, benchmark aluminium was last bid
down 0.50 percent at $1,800 a tonne, having earlier hit its
lowest since late September at $1,798.50 a tonne.
Russia's United Company Rusal said it expected the
global aluminium market to fall into a deficit of 280,000 tonnes
this year due to production cuts as it posted a recurring net
loss of $132 million in the three months ended September 2013.
Tin ended down 1.07 percent at $22,700 a tonne.
Several top-tier London Metal Exchange members, including
JPMorgan Chase, are starting to look at whether they may
join Indonesia's main commodities exchange, sources said, in a
sign the new tin contract may eventually lure Western players.
Zinc ended down 0.53 percent at $1,885 a tonne,
having earlier touched its lowest in about a month at $1,882 a
tonne. Lead ended down 0.94 percent at $2,107 a tonne,
having earlier touched its lowest in nearly a month at $2,101 a
Nickel ended down 0.87 percent at $13,630 a tonne,
having earlier touched its lowest since early October at $13,606
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
Three month LME tin