Make Kitco Your Homepage

METALS-Copper slips as dollar gains, China imports disappoint

Kitco News

* Dollar extends recovery on post-election relief

* China October copper imports fell, data shows

(Recasts, updates prices, adds details/quote; changes dateline)

By Maytaal Angel

LONDON, Nov 8 (Reuters) - Copper slipped on Thursday as the dollar extended its recovery after U.S. midterm elections and data showed copper imports by top buyer China fell in October.

China consumes nearly half the world's copper and data showed its imports of the metal in October fell 19 percent from September. Still, analysts were not too downbeat about copper's prospects.

"There's a Golden Week effect in (the data). October data is usually lower. I would still expect relatively high refined copper imports over the fourth quarter because the import arbitrage has been wide open," said Colin Hamilton, head of commodities research at BMO Capital Markets.

The copper import data was part of a batch of China trade figures that showed much stronger-than-expected exports as shippers rushed goods to the United States to beat higher tariff rates due to kick in at the start of next year.

Import growth also defied forecasts for a slowdown, suggesting Beijing's growth-boosting measures to support the cooling economy may be slowly starting to have an impact. "Two or three weeks ago ... the feeling was that China wasn't reacting quickly enough to the weaker equity markets but now we're getting better figures... it should be supportive (of copper) in the short term," said Hamilton.

* PRICES: Three-month copper on the London Metal Exchange fell 0.9 percent to $6,098 a tonne by 1117 GMT, while aluminium prices dipped 0.2 percent to $1,981.50.
* DOLLAR: The dollar rose as the market breathed a sigh of relief after the U.S. midterm elections and investors turned their attention towards the Federal Reserve policy meeting. A stronger dollar makes dollar-priced metals costlier for non-U.S. investors.
* CHINA ALUMINIUM: China's aluminium exports fell in October as sliding domestic production meant less metal was available for overseas markets.
* CHINA-U.S. TRADE: The U.S. Commerce Department said it would impose final duties on Chinese common alloy aluminium sheet products.
* BRAZIL ALUMINIUM: Top alumina refinery Alunorte in Brazil, run by Norsk Hydro , will remain on half capacity for environmental violations following a Wednesday federal court ruling.
* INDONESIA TIN: Indonesia's refined tin exports in October fell 42 percent from a month earlier to 5,109 tonnes, official data showed, following the introduction of restrictions on some sales last month by the country's only tin-trading bourse.
* JAPAN METALS: Japan's Sumitomo Metal Mining Co cut its full-year forecast, blaming lower-than-expected metal prices, reduced nickel output and the U.S.-Sino trade spat which it said shows no sign of abating.

(Additional reporting by Mai Nguyen Editing by Susan Fenton)

Messaging: ))

LME price overview COMEX copper futures Base metals news All metals news All commodities news Metals diary Foreign exchange rates SPEED GUIDES ))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.