* China CPI accelerated more than expected in June
* Freeport resumes copper ore shipments from Indonesia
* Nickel hits fresh four-year low
By Maytaal Angel
LONDON, July 9 Copper fell on Tuesday as the
dollar rose and Chinese inflation data reinforced worries about
slowing growth in the world's top copper consumer, though risk
appetite in the wider markets and oversold conditions kept
losses in check.
Copper, down nearly 15 percent this year, fell on Friday
after strong U.S. jobs data bolstered concerns that the Federal
Reserve could start winding down its stimulus programme as early
After steadying on Monday, the metal resumed its downtrend
after data from China showed its annual consumer inflation
accelerated more than expected in June.
The dollar also rose towards recent three-year highs versus
a basket of other currencies. A strong
dollar makes dollar-priced metals more expensive for non-U.S.
Three-month copper on the London Metal Exchange
closed at $6,730 a tonne, down from $6,830 on Monday. Copper has
struggled to get any traction after inching away from a
three-year low of $6,602 a tonne hit on June 25.
"The Chinese CPI reduces the likelihood of China doing more
stimulus," said William Adams, head of research at
"We're moving into a market surplus and copper is well above
the cost of production. Overall I'd be neutral to bearish for
copper, but a lot of negative news has been priced in and that
might prompt short-covering (in the near term)," he added.
Also weighing on copper, Freeport McMoRan Copper & Gold Inc
has resumed copper concentrate shipments from its mine
in Grasberg, Indonesia, after a near two-month stoppage caused
by a tunnel cave-in that killed 28 people, Bloomberg reported.
Also, copper concentrate shipments to China from Mongolia's
giant Oyu Tolgoi mine began on Tuesday. At full tilt, the mine
is expected to produce around 450,000 tonnes of copper.
In the wider markets, world shares extended gains, spurred
by a good start to the U.S. earnings season and by a deal to
give Greece the latest 6.8 billion euro instalment of its
But the optimism had yet to help copper, with investors
still nervous ahead of more Chinese data expected to show growth
is grinding towards a 23-year low. Chinese trade numbers are due
on July 10 and GDP on July 15.
Deutsche Bank analysts said in a note they believed that
expectations regarding the Federal Reserve reining in its bond
buying along with dollar strength could sustain headwinds for
industrial metals, though they noted speculative net shorts in
copper are at all-time high.
"We expect China's copper imports to recover modestly," the
China's imports of copper are likely to have extended gains
in June from the previous month as falling prices spurred
purchases, traders said. But slowing growth means shipments for
the first six months of 2013 probably stayed in the red.
In other metals traded, tin closed at $19,305 from
$19,450, while nickel was at $13,325 from $13,430,
having hit a fresh four-year low at $13,205 as LME stocks
remained near a recent record high of 193,776 tonnes.
Refined tin shipments from Indonesia, the world's top
exporter of the metal, rose 20 percent in June to 11,111.38
tonnes, from 9,242.05 tonnes in May, a trade ministry official
Aluminium closed at $1,790 a tonne from $1,803.
Alcoa Inc, the largest U.S. aluminium producer, still
sees global demand for aluminium products growing 7 percent this
year, signalling a potential price rise for the metal as bulging
Chinese inventories begin to dwindle.
Zinc closed at $1,869 a tonne from $1,880, and lead
at $2,307 from $2,071.