Copper flat; finds support as China data relieves market * China 2014 GDP at 7.4 pct, down from 7.5-pct target * China Dec industrial output at 7.9 pct, from 7.4 pct forecast * Coming up: Germany ZEW economic sentiment London copper steadied on Tuesday after data showed slowing growth in Chinas economy despite some bright spots in the worlds top metals user. Chinas economy grew at its slowest pace in 24 years in 2014 as a cooling property market weighed on demand and is expected to lose more momentum this year, keeping pressure on policymakers to head off a sharper downturn. December data had posted numerous upside surprises after a weak November, including factory output and retail sales that beat expectations. The industrial output number was quite strong. Im hopeful that it will maybe take the focus off the supply-side of the equation which has obviously been a bearish focus for the market, said analyst Daniel Hynes at ANZ in Sydney. The copper market is broadly expected to swing into a global surplus this year for the first year in five. While there may be still some shorts out there and some downside risk still about ... they will be relatively shortlived. Ultimately, the positive data coming through both on supply and demand will see those prices recover gradually ... From these levels well see some significant upside. Three-month copper on the London Metal Exchange traded at $5,667 a tonne by 0710 GMT, down 0.1 percent and adding to small losses from the previous session. Prices have failed to find much momentum from 5-1/2 year lows of $5,353.25 tipped last week. The most-traded March copper contract on the Shanghai Futures Exchange sank 0.4 percent to 41,240 yuan ($6,633) a tonne. Chinese factory output rose 7.9 percent in December from a year earlier, versus expectations for a 7.4 percent increase and Novembers 7.2 percent, other data showed on Tuesday. Adding to jitters, the International Monetary Fund lowered its forecast for global economic growth in 2015, and called for governments and central banks to pursue accommodative monetary policies and structural reforms to support growth, echoing last weeks World Bank comments that spooked markets. Rio Tinto reported a sharp rise in quarterly iron ore output on Tuesday amid a drive to corner a greater share of the world market, and reported price gains at its long-pilloried aluminium division. Mined and refined copper output came in around guidance at 615,000 tonnes and 300,000 tonnes last year.
Posted on: Tue, 20 Jan 2015 07:31:04 +0000
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