* U.S. Q2 GDP, non-farm payrolls scheduled for this week
* Zinc retreats after hitting 3-year high
* Lead slips after 17-month high
(Recasts, adds closing prices/details)
By Harpreet Bhal
LONDON, July 29 Copper prices slipped on
Tuesday, as prospects of growing supplies overshadowed
encouraging signs of health in the global economy, and zinc
retreated after hovering near three-year highs on expectations
of a tightening market.
Three-month copper <CMCU3 on the London Metal Exchange (LME)
closed down 0.56 percent at $7,080 a tonne.
Data earlier this month showed manufacturing in the world's
top metals user, China, expanded at its fastest in 18 months in
July, while the U.S. economy has gathered pace, with the outlook
for its labour market brightening.
The copper market was expected to register another year of
surplus this year, in a move that is seen weighing on prices.
Late last week, the world's top copper producer Freeport-McMoRan
Inc clinched a deal with the Indonesian government to
allow the miner to resume copper concentrate exports.
The base metals complex could struggle to eke out
significant gains for the remainder of the week ahead of
economic indicators due later in the week and international
political risk, analysts said.
This week, second-quarter economic growth in the United
States, a U.S. jobs report and an official reading on China's
factory health were expected to show fresh signs that a global
economic revival has taken hold.
"Investors surely want to wait for the big events.. such as
the outcome of the FOMC (Federal Open Market Committee) and the
U.S non-farm payroll data this week. No one wants to bet big,"
said Naeem Aslam, chief market analyst at Ava Trade.
"On top of that Russian sanctions are very much back on the
forefront, and the new sanctions by the European Union, which
could be announced as soon as tomorrow, are also weighing on the
EU diplomats will try to agree on Tuesday on broader
economic sanctions against Russia for its actions in Ukraine.
Measures being considered include targeting capital markets,
defence and sensitive technology.
In the U.S. consumer confidence jumped in July to a monthly
high not seen since October 2007, according to a private sector
report released earlier.
Benchmark zinc traded at a session peak of $2,416 a
tonne, hitting its highest since August 2011 for a second
consecutive day, but ended down nearly 2 percent at $2,366 a
Several top zinc mines are drying up, including Century in
Australia, while a recovery in the construction industry would
revive demand from galvanisers.
"The direction is right. It's probably gone a lot quicker
than I expected, which opens it up for some profit-taking ... I
wouldn't expect to see a significant sell-off," said ANZ
strategist Daniel Hynes in Sydney.
Lead rose to $2,307, the highest since late February
2013, but ended down nearly 1.5 percent at $2,267 a tonne.
Tin ended at $22,900 a tonne, up 1.10 percent,
aluminium closed at $1,982 a tonne, down 1.59 percent
while nickel ended at $18,650 a tonne, down 0.80
Goldman Sachs Group Inc's metals warehousing unit is
exploring its first foray into China and privately held C
Steinweg has expanded capacity there, sources said, as a
financing scandal in a major Chinese port fuels a scramble for
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
(Additional reporting by Melanie Burton in Sydney; editing by
Keiron Henderson and Jason Neely)