BLBG: U.S. Commodities Day Ahead: Copper Declines on China Concerns
The following are the top stories on metals, agriculture and shipping.
ECONOMIC EVENTS:
Forecast Prior Time
(N.Y.)
Initial Jobless Claims JAN 15 420K 445K 8:30
Continuing Claims JAN 8 3985K 3879K 8:30
Existing Home Sales DEC 4.87M 4.68M 10:00
Existing Home Sales MoM DEC 4.1% 5.6% 10:00
Leading Indicators DEC 0.6% 1.1% 10:00
Philadelphia Fed JAN 20.8 20.8 10:00
RPX Composite 28dy YoY NOV -2.29% 15:30
METAL PRICES: ($/ton)
Last % Chg RSI
Copper 9,456 -1.2 54
Aluminum 2,405 -1.0 45
Zinc 2,344 -1.9 45
Lead 2,475 -2.2 44
Nickel 25,580 -0.4 58
Tin 26,780 -0.4 56
OTHER MARKETS:
Last % Chg % YTD
U.S. Dollar Index 78.548 -0.1 +0.3 Crude Oil $90.35 -0.6 +16
Gold $1,363.9 -0.4 +23
MSCI World Index 1,302.04 -0.5 +9.9
TOP STORY:
Copper Drops on Concern China May Take More Steps to Curb Growth
Copper fell for a second day in London on concern that swifter growth in China, the world’s biggest consumer of the metal, may spur more steps to restrain the economy.
COMMODITY EXCLUSIVES:
Global Copper Shortage to Widen on Economic Recovery (Update2)
Copper demand will outstrip supply for the next two years as the economy recovers, China sustains consumption and mine output drops, Japan’s top producer said.
Bashneft Said to Seek $300 Million Three-Year Syndicated Loan
OAO Bashneft, the oil producer controlled by Russian billionaire Vladimir Yevkushenkov’s AFK Sistema, is in talks with banks to raise a syndicated loan for about $300 million, according to three people with knowledge of the situation.
Indian Exchange to Expand Metal Contracts for ‘Retail’ Buyers
India’s National Spot Exchange Ltd., the nation’s biggest bourse for trading physical gold, plans to offer contracts in lead, aluminum and nickel for “retail” investors after introducing a zinc contract earlier this month.
Silver May Drop 20% as Coins Signal ‘Crowd’: Technical Analysis
Silver prices may retreat as much as 20 percent this year as soaring demand for physical metal signals a “crowded” trade, said Barry James, the chief executive officer of James Investment Research Inc.
INDUSTRIAL METALS:
China’s Copper Output Gains to Record on High Prices (Update2)
Copper output in China, the largest consumer, increased to the highest-ever level in December and last year, as ample raw material supplies and record prices spurred production.
ANZ Raises Base Metals Forecasts Through 2013 on Demand Outlook
Australia and New Zealand Banking Group Ltd. raised its price estimates for copper, aluminum, lead, nickel and zinc through 2013, citing an “ongoing upbeat view” of China, the world’s largest metals user, and improving conditions in developed markets.
MINING:
BHP’s Second-Quarter Iron Ore Gains 4% to Record (Update3)
BHP Billiton Ltd., the world’s largest mining company, said second-quarter iron ore production rose 4 percent to a record, while coking coal output fell in Australia because of record rains and floods.
Iron Ore Extends 2011 Advance to 6.1% on China New Year Stocking
Prices for Australian iron ore delivered to China extended gains this year to 6.1 percent as purchases were made before the Far East nation celebrates the Lunar New Year.
Kenmare Boosts Production From Mozambique’s Moma Mine (Update1)
Kenmare Resources Plc, a producer of titanium minerals in Mozambique, said output of heavy mineral concentrate from its Moma project increased by 8 percent in the second half, compared with the first half.
PRECIOUS METALS:
Gold Falls as Improved U.S. Economic Outlook Curbs Haven Demand
Gold dropped for the first day this week in London on signs of economic recovery in the U.S., cutting the need for haven investments.
China’s Total Gold Production Advances 6% in 2010 (Update1)
Gold output in China gained 6 percent to 615 metric tons in 2010 from a year earlier, while silver production advanced 8.3 percent to 11,617 tons, according to data from the National Bureau of Statistics today.
AGRICULTURE:
Wheat Falls for First Time This Week as Price Gains Deter Demand
Wheat fell for the first time this week in Chicago, erasing a gain, as the grain’s 16 percent climb in the past three months deterred investor demand.
Rubber Climbs to Record as Thai Flooding Warning Spurs Buying
Rubber surged to a record as a flood warning in Thailand, the world’s largest supplier, spurred purchases, raising concerns that shortages of the commodity used in tires may worsen.
Sugar Climbs in London After Report Russia May Import Earlier
Sugar climbed in London after a report that Russia, the world’s largest importer, may boost purchases two months early.
China’s growth accelerated to 9.8 percent in the fourth quarter as industrial production and retail sales picked up, adding pressure on policy makers to keep raising interest rates.
Dollar Gains on Stock Losses; Kiwi Falls on Slower Inflation
The dollar rose for the first time in three days against the euro as Asian stock declines boosted demand for the greenback as a refuge and technical charts signaled its recent losses were excessive.
China Stocks Drop for First Time in 3 Days on Inflation Outlook
China’s stocks fell for the first time in three days on concern inflation will pick up this month after slowing in December, increasing pressure on the government to raise interest rates.
Moody’s Looking at Portugal’s Exports in Bond-Rating Review
Moody’s Investors Service is looking at the sustainability of Portugal’s export performance as part of a review of the country’s government-bond ratings.
OTHER MARKETS:
Stocks, U.S. Futures Drop on China Rate Concern; Copper Falls
Stocks fell, with the benchmark index for emerging markets dropping the most in six weeks, while U.S. index futures and copper declined as China’s accelerating economy fanned concern interest rates will rise.
Aussie Dollar Falls on Stock Losses, Bets China to Cool Growth
The Australian and New Zealand dollars declined against most of their major peers as speculation that China will take more measures to cool growth dented demand for higher-yielding currencies.
Pound Snaps 9-Day Gain Versus Dollar on Bets Rally Overdone
The pound weakened against the dollar for the first day in 10 on speculation its longest winning streak in more than five months was overdone, given the outlook for the U.K. economy.
European Stocks Fall on China Inflation Concern; EasyJet Sinks
European stocks fell for a second day as accelerating Chinese economic growth fueled concern the government will lift interest rates further to calm inflation. U.S. index futures and Asian shares declined.
Asian Stocks Drop as China Data Prompts Tightening Speculation
Asian stocks fell, with the regional benchmark index sliding the most in almost two months, as Chinese economic reports prompted speculation the country will do more to fight inflation and U.S. earnings disappointed.
Oil’s Drop Is Longest in 9 Weeks on Bets China Will Slow Growth
Oil fell for a third day, the longest losing streak in nine weeks, as inflation in China bolstered speculation the world’s biggest energy user will take more steps to cool the economy and slow fuel demand.
Emerging-Market Stocks Fall Most in Six Weeks; Currencies Drop
Emerging-market stocks fell the most in six weeks and currencies weakened on deepening concern that Chinese inflation will accelerate, spurring the central bank to increase interest rates.
SPORTS:
Premier League Nears U.K. Settlement on Tax Avoidance (Update1)
The Premier League and U.K. authorities are moving closer to an agreement that will require soccer clubs to pay millions of pounds to the government and curb teams’ attempts to reduce players’ tax bills, according to two people familiar with negotiations.
Sunderland Eyes Stoke’s Fuller as Replacement for Bent: Roundup
The following is a roundup of soccer stories from U.K. newspapers, with clickable links to the Web.
FIFA Says ‘No Concrete Plans’ to Shift 2022 World Cup to Winter
FIFA has “no concrete plans” to move the 2022 World Cup in Qatar from the summer to winter, soccer’s governing body said in an e-mailed statement today.
To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net
