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METALS-Copper falls after China, France factory data
September 20, 2012 / 3:56 AM / in 5 years

METALS-Copper falls after China, France factory data

* Data shows sustained contraction in China manufacturing
    * French PMI falls at its fastest rate since April 2009

 (Adds comments, detail, updates prices)
    By Melanie Burton
    SINGAPORE, Sept 20 (Reuters) - London copper fell on
Thursday after data from top consumer China showed manufacturing
activity continued to contract, while prices came under more
pressure as a poor reading from France pushed the euro down
against the dollar.
    Manufacturing in China contracted for an 11th month in a row
in September, according to a private sector survey of factory
managers that indicated the world's second largest economy
remains on track for a seventh quarter of slowing growth.
    French business activity tumbled at its fastest rate since
April 2009 raising worries of a deepening recession and pushing
the euro down, although a German private sector contraction
eased in September.  
    Still China's PMI number, which provides the first glimpse
of September's conditions for Chinese industry, seems to point
to a month in which a slide was halted, but not reversed,
suggesting limited downside for prices, Singapore-based analyst
Bonnie Liu of Macquarie said. 
    "We do see some things getting better from September as
orders filter down into the market. The macro environment is
improving and so are orders for cement, steel and copper," she
    "Still prices are not going to move up much because that
demand is not that strong ... it's only a seasonal pick up for
the fourth quarter."
    Three-month copper on the London Metal Exchange fell
by 1.21 percent to $8,248.75 a tonne by 0736 GMT. Copper hit its
highest since May 2 at $8,422 a tonne in the previous session.
    Prices came under pressure as some participants took profits
on copper's recent price strength after the China data failed to
show more concrete recovery, a trader said.
    The most-traded January copper contract on the Shanghai
Futures Exchange slipped 2 percent to close at 59,310
yuan ($9,400) a tonne.
    The euro fell to a one-week low against the dollar on
Thursday after the French data. A stronger dollar makes
commodities priced in the greenback more expensive for those
holding other currencies. 
    French business activity took a sharp turn for the worse in
September, shrinking at its fastest rate since April 2009 as
weak domestic demand and a deepening slowdown in southern Europe
dragged the euro zone's No. 2 economy towards contraction. 
    Of the metals, tin was the worst hit, falling nearly
five percent at one point to $20,441 a tonne as dollar strength
triggered chart-based selling when prices pierced support at the
200-day moving average near $20,800.
  Base metals prices at 0736 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8248.75   -101.25     -1.21      8.54
  SHFE CU FUT JAN3    59310     -1210     -2.00      7.14
  HG COPPER DEC2     375.50     -5.90     -1.55      9.28
  LME Alum          2115.00    -23.00     -1.08      4.70
  SHFE AL FUT DEC2    15700      -155     -0.98     -0.92
  LME Zinc          2099.00    -24.50     -1.15     13.77
  SHFE ZN FUT JAN3    15600      -285     -1.79      5.44
  LME Nickel       17651.00   -104.00     -0.59     -5.66
  LME Lead          2240.50    -30.50     -1.34     10.10
  SHFE PB FUT      16000.00   -200.00     -1.23      4.68
  LME Tin          20750.00   -650.00     -3.04      8.07
  LME/Shanghai arb^    1475
   Shanghai and COMEX contracts show most active months
 ($1 = 6.3093 Chinese yuan)

 (Editing by Himani Sarkar)
 (; +65 6870 3017; Reuters

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