Copper dips to one-week low

Copper fell near a one-week low on Tuesday, as worries about a debt crisis in Europe and conflict on the Korean peninsula boosted the dollar, deterring non-US investors. Benchmark copper on the London Metal Exchange was last bid at $8,140/$8,145 a tonne against Monday's $8,290.
Earlier on Tuesday, the metal used in power and construction fell to $8,050 a tonne, its lowest since November 17 and 10 percent below its record high of $8,966 a tonne hit on November 11. Global financial authorities agreed at the weekend to save debt-swamped Ireland, fanning concerns that debt problems could emerge elsewhere in Europe.
"It's concerns about the stability of the eurozone," Daniel Smith, an analyst at Standard Chartered, said of metals' losses. But he expected markets to improve. Copper extended losses briefly in afternoon trade, however, after data showed sales of previously owned homes in the United States fell more than expected in October.
Signs have emerged of a tightening copper market next month as LME inventories have dropped steadily since the start of the year, with metal for delivery on December 15 trading at "pretty brutal" premiums over those for one week later, a trader said. Supply has been tightening noticeably with cash copper flipping into a premium against the benchmark three-month contract some two weeks ago, and the premium has risen above $30.5 a tonne from a $2.5 discount in early November.
On the supply side, the world's No 3 copper mine, Collahuasi, said copper output and deliveries remained normal under a contingency plan, even as a strike entered a 19th day. Across other metals, aluminium closed at $2,255 a tonne from $2,288 a tonne, while stainless steel material nickel closed at $21,600 flat from Monday's close, which was also $21,600.
Zinc, used in galvanising, closed at $2,085 a tonne from $2,138, while lead, used in the battery sector, fell to as low as $2,164 from $2,250, as funds responded to a worsening chart picture. It later closed at $2,186.5 a tonne. Tin fell to as low as $23,815 a tonne, approaching near two-month lows. It closed at $23,900 from $24,300 late on Monday. Inventories reached their highest levels since early September, LME data showed, as industry winds down towards the end of the year.