Copper slightly down

Copper closed slightly down on Tuesday after volatile trading and prices were near their lowest levels in almost two weeks as the dollar strengthened and investors remained sceptical of Europe's efforts to pull itself out of a debt crisis. Three-month copper on the London Metal Exchange closed at $7,600 a tonne, compared with a close of $7,606 on Monday, when prices had fallen to a near two-week low during the session at $7,565.50.
Earlier, the metal used in power and construction hit a session high of $7,686.75 a tonne as the euro reached a session peak against the dollar. As the dollar recovered and turned positive against the euro, however, copper erased previous gains. Copper has fallen around 21 percent so far this year, ending a run of two straight annual gains, on worries about the demand outlook for industrial metals as the crisis in Europe threatens to crimp growth in the global economy.
Doubts lingered over Europe's ability to calm market fears surrounding its growing debt crisis and uncertainty grew about whether its efforts so far would be enough to fend off a mass downgrade of sovereign credit ratings within the currency bloc. "Trade is thin and the market is still digesting the rather inconclusive EU summit last weekend, which didn't offer any short-term resolution," Credit Agricole analyst Robin Bhar said. A pact among up to 26 European Union countries to enforce stricter budget rules and win back confidence in the eurozone will be finalised by March 2012, European Council President Herman Van Rompuy said on Tuesday.
Freeport McMoRan Copper & Gold Inc and its Indonesian workers' union expect to sign a pay deal on Tuesday to end a three-month strike that has crippled production at the world's second-biggest copper mine, two sources told Reuters. The decline in copper prices has been limited in recent months by output disruption at some of the biggest mines in the world, including Freeport's Grasberg in Indonesia and Cerro Verde in Peru. "Metals-specific fundamentals seem to take a backseat for now as the negative implications of ongoing sovereign debt problems are back in focus," Credit Suisse said in a note. Across other metals, aluminium traded at $2,000 a tonne from a close of $2,015 a tonne on Monday.
LME data showed 100,000 tonnes of aluminium flowed into warehouses in Detroit, with total aluminium stocks in LME-registered warehouses climbing to a fresh record high of 4,811,550 tonnes. Zinc, used in galvanising, changed hands at $1,912 a tonne, from $1,932 Monday's close, while tin, untraded in rings, was bid at $19,500 from $19,900. Nickel, untraded in rings, was bid at $18,300 a tonne from $18,450 while battery material lead changed hands at $2,085 from Monday's close of $2,105.50. Most of China's larger battery manufacturing plants have reopened after obtaining environmental clearance, pushing demand for refined lead higher and prompting smelters to raise production, industry sources said on Tuesday.