Copper slips

Copper dipped on Wednesday, reversing earlier gains, after a US retail sales report reinforced views the world's top economy is slowing and added to fears of worsening euro zone debt and upcoming elections in Greece. Three-month copper on the London Metal Exchange closed at $7,390 from Tuesday's close of $7,395 a tonne.
Global stocks also fell and the dollar edged lower as figures showed US retail sales declined for a second straight month in May and wholesale prices dropped by the most in three years, further signs the economy is struggling. "Definitely things are getting worse from a macro perspective. The US has disappointed in the last week or two, so I think the risks are on the downside for the short term," said analyst Dan Smith of Standard Chartered, adding that dips should be seen as a buying opportunity.
A 100 billion euro ($125.74 billion) bank rescue plan for Spain earlier this week failed to calm nerves about debt contagion, and uncertainty remained about whether Greece will remain in the euro zone after its June 17 elections. "The chances of a major blow-out in Europe are not that high. People are getting quite cautious ahead of the weekend's elections. It's more likely to see an event that will be positive for risk appetite and therefore you'll see copper doing well early next week," Smith said.
Copper, used in power and construction, is trading more than 11 percent lower so far this quarter as worries about the euro zone debt crisis and uncertainty about demand from top consumer China weigh. It is down 2.3 percent in the year to date. "Once again, market participants chose to remain on the sidelines, occupied by the macro news flow in Europe in addition to concerns over lost growth momentum in China and the release of numerous macro statistics earlier this week," Andrey Kryuchenkov, analyst at VTB said in a note.
In industry news, global copper market heavyweights are drafting proposals to stop metal from getting stuck in queues leaving storage facilities, as such delays would threaten the credibility of the London Metal Exchange's (LME) flagship product, industry sources said.
Russian group Norilsk Nickel, the world's largest nickel and palladium miner, has resumed shipments from its Arctic port of Dudinka after flooding prompted a seasonal halt. Dudinka, the company's main export outlet, restarted operations last week when crane boats began to service vessels, Norilsk said on Wednesday. LME nickel stocks are close to one-year highs, as demand from the stainless steel sector remains weak, as prices recover from 2.5 year lows.
"CTAs (have been) selling short, and we are now seeing a short covering rally, which started Friday afternoon and continues today," an LME nickel trader said. China's nickel ore imports are expected to have hit a record high in May after a rush to purchase laterite ore ahead of a curb on shipments by top supplier Indonesia, although high inventories could put pressure on nickel prices.
Nickel closed at $16,980 from a close of $17,175, while lead ended at $1,899 from Tuesday's $1,895.50. Tin was $19,450 a tonne from Tuesday's close of $19,700 a tonne, and aluminium was at $1,964 from $1,968. Zinc, untraded at the close, was last bid at $1,882 from $1,880.