* HKEx plans to launch monthly, cash-settled metals
* U.S. private sector adds 215,000 jobs in Nov
By Susan Thomas and Harpreet Bhal
LONDON, Dec 4 Copper rose on Wednesday as the
dollar fell but the price remained under pressure due to slow
demand and rising supplies of the industrial metal.
Concerns that the U.S. Federal Reserve may withdraw its
commodities-friendly stimulus after robust economic data added
to investor caution.
Three-month copper on the London Metal Exchange
ended at $7,095, up from $6,960 at the close on Tuesday.
"We see a gradual long-term story, where oversupply and
overcapacity in the copper market will gradually drag down
prices over the next couple of years and coupled with that a
weak demand outlook," Capital Economics analyst Tom Pugh said.
A softer dollar versus a basket of currencies on
Wednesday helped prop up the copper price. A weaker U.S.
currency makes it less expensive for foreign investors to
purchase dollar-priced commodities, typically lifting prices.
Also boosting investor sentiment was data showing U.S.
private employers added 215,000 jobs in November, topping
economists' expectations, a move which could bring the U.S. Fed
closer to curtailing its massive monetary stimulus.
"The ADP employment data has pushed copper up which was
already recovering its losses from yesterday," said Naeem Aslam,
chief market analyst at Ava Trade.
"The final figure for the API employment data has blown past
the expectation, and this was enough for the market pundits to
light up tapering talk further."
The stimulus programme has released more money into the
economy, and has been used to buy assets including commodities.
World production of refined copper grew by 6 percent or
788,000 tonnes in the first eight months of the year, compared
with year-ago figures, the International Copper Study Group
(ICSG) said last month. This stemmed mainly from a 15.5 percent
rise in China's output.
In Chile, the world's largest producer of copper, production
improved more rapidly than expected this year, with the
country's mined output up by almost 7 percent in the year to
September, according to World Bureau of Mining Statistics data.
In China, the world's top consumer of most commodities,
leaders pledged at a meeting of the decision-making Politburo on
Tuesday to quicken economic reforms in 2014, while keeping
policy stable and consistent, the official Xinhua news agency
But signs are emerging that the pick-up in activity might
not result in a quicker pace of consumption of commodities such
"The type of economic growth in China is going to move from
commodity intensive investment to more consumer driven
services-type spending," Pugh said. "So even though China's
economy might in absolute terms still be growing, it will be
using a lot less copper per unit of economic growth."
In exchange news, Hong Kong Exchanges and Clearing Ltd
(HKEx) plans to launch monthly, cash-settled futures
contracts based on its suite of London Metal Exchange (LME)
contracts, CEO Charles Li told Reuters.
LME benchmark three-month zinc ended at $1,895 per
from $1,875 at the close on Wednesday. Aluminium was at
$1,772 from $1,740, lead ended at $2,085 per tonne from
$2,064, tin closed at $22,725 per tonne from $22,450 and
nickel was $13,650 per tonne from $13,450.
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