* Tin trade picks up on Indonesia ICDX exchange
* China consumers eye $6,950 level for copper buys-trader
* Coming Up: U.S. international trade at 1330 GMT
By Melanie Burton
SINGAPORE, Nov 14 London copper bounced on
Thursday from three-month lows hit in the previous session after
dovish comments by Federal Reserve Vice Chair Janet Yellen
soothed concerns that the United States could begin tapering its
huge bond-buying programme this year.
Copper on Wednesday finally crashed out of the $7,000-$7,420
a tonne range that it had been in for the past three months as
rising risk aversion and growing supply blunted appetite for
Its rebound, however, appears lukewarm and traders said
short-term technical indicators have turned bearish, paving the
way for further selling.
"People are in a bit of a state of confusion over the timing
of tapering," said analyst Alexandra Knight of National
Australia Bank (NAB) in Melbourne.
"The U.S. jobs data came out earlier in the week, which
swung expectations towards tapering this year, but maybe
Yellen's comments have pushed it back a bit the other way," she
Yellen, President Barack Obama's nominee to lead the Federal
Reserve, thinks the U.S. central bank has "more work to do" to
help an economy and a labour market that are still
Loose monetary policy tends to support commodities because
liquidity is more easily available for businesses and investors.
Three-month copper on the London Metal Exchange
climbed 0.37 percent to $7,006 a tonne by 0703 GMT, paring the 2
percent fall in the previous session.
Copper prices fell as far as $6,956 a tonne on Wednesday,
the lowest since Aug. 7.
The most-traded January copper contract on the Shanghai
Futures Exchange dropped 0.7 percent to close at 50,450
yuan ($8,300) a tonne, also touching a three-month low.
"Chinese consumers are waiting patiently under $6,950 - I've
not seen too many panic and pay up this morning," said a trader
Growing supply is a overhang for the copper market.
In one example of a major new mine project, Rio Tinto
is set to submit a mine plan to U.S.
authorities this week for its $6 billion Resolution project in
Arizona, which could become the largest copper producer in North
"We do think it will be in surplus next year, but it will be
a small surplus. We are definitely expecting more supply to come
on line which could put some downwards pressure on prices," said
Knight of NAB.
New regulations in top tin exporter Indonesia forcing local
producers to trade on a domestic exchange before export have
crimped availability of tin metal, which is being reflected in
LME spreads and also in rising physical premiums.
"Supply has definitely tightened up, even for low purity tin
in the past month. A lot of people are looking for alternative
sources of supply," said one physical trader in Singapore.
He quoted premiums for low lead tin around $300, up around
$100 from late September.
On the LME, cash tin prices rose $36 higher than benchmark
three-month prices on Wednesday, the loftiest since early
September, while LME tin stocks have dropped to
their lowest in about one year.
Volumes of the Indonesia's tin contracts
have picked up in the past two
days, although they remain at low levels, trading around 140
lots, equivalent to 700 tonnes that will be available for
Three month LME copper
Most active ShFE copper
Three month LME aluminium
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Three month LME zinc
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Three month LME lead
Most active ShFE lead
Three month LME nickel
Three month LME tin