* Fed could still taper stimulus in October-Bullard
* Tin hovers around 6-month high
By Silvia Antonioli and Harpreet Bhal
LONDON, Sept 20 Copper edged lower on Friday
after hitting its highest in almost a month as investors,
following the U.S. Federal Reserve's decision to stick to its
stimulus program, shifted focus back to fragile fundamentals.
Benchmark copper on the London Metal Exchange hit a
session high $7,368 a tonne, its highest since Aug. 27, before
slipping to trade at $7,280 at the close, down from a close of
$7,335 on Thursday.
Copper prices have rallied as much as 4 percent after the
Federal Reserve surprised markets on Wednesday by saying it
would maintain bond purchases at their present pace, but the
recovery lost steam on Friday.
"The recent gains were mostly macro-driven and with the Fed
decision out of the way, at least for now, attention will turn
back to copper fundamentals," VTB Capital analyst Andrey
"We are yet to see a narrowing of the copper contango,
further draws in Shanghai warehouse inventories as well as
rising domestic premiums and eventually falling LME
On Friday the copper forward curve was in a $25 contango , a discount for the cash price against the three-month
A narrowing of the contango or the curve flipping into a
backwardation - where there is a premium for the cash price
against the three-month price - is seen as a sign of improving
Weighing on metals, the dollar index rose after St. Louis
Fed President James Bullard said on Friday that the Fed could
still scale back its massive bond buying program at an October
meeting, should data point to a stronger economy.
A stronger U.S. unit makes dollar-priced commodities
costlier for holders of other currencies.
Markets in China, the world's largest consumer of copper,
reopens on Monday after a two-day holiday.
"To us, it seems that the element of surprise emanating from
the Fed announcement is starting to dissipate and we therefore
doubt the Chinese will be inclined to "top up" the Fed-induced,
easy-money rally," INTL FCStone analyst Ed Meir said in a note.
In other metals, tin ended at $23,045 from $23,290
at the close on Thursday when the metal hit a 6-month high of
Prices were boosted by strict rule changes on shipments from
top exporter Indonesia, which has prompted some electronics
makers to seek to diversify supply.
The Rwandan subsidiary of British mining firm Pella
Resources Ltd plans to invest $22 million in the east African
country's small mining industry to extract tin ore, under a deal
signed on Thursday.
Zinc ended at $1,871.50 from Thursday's close of
$1,906 while nickel closed at $14,035 versus $14,400.
Lead ended at $2,084 from $2,126 and aluminium
, untraded at the close, was bid at $1,800 from a close
of $1,829 on Thursday.
Three month LME copper CMCU3
Most active ShFE copper SCFcv1
Three month LME aluminium CMAL3
Most active ShFE aluminium SAFcv1
Three month LME zinc CMZN3
Most active ShFE zinc SZNcv1
Three month LME lead CMPB3
Most active ShFE lead SPBcv1
Three month LME nickel CMNI3
Three month LME tin CMSN3