Copper steadies

Copper steadied on Tuesday as patchy US economic data fuelled concerns over an economic slowdown and reduced risk appetite but a soft dollar and supply concerns lent some support. Benchmark copper on the London Metal Exchange closed at $9,140 a tonne, only 0.05 percent up from a close at $9,135 on Monday. The metal hit its highest in a month at $9,278.50 one a week ago, but has failed to gain any momentum.
US Federal Reserve officials on Monday said recent economic data had been disappointing, with one suggesting it could delay the Fed's exit from its extremely easy monetary policy. "At the moment high risk aversion due to below expectations macro data published last week is still weighing on sentiment but a weaker dollar, on the other hand, is supporting metals," said Daniel Briesemann, an analyst at Commerzbank.
The dollar hit a record low against the Swiss franc and fell against other currencies after a senior Chinese currency regulator warned about the risks of investing too heavily in dollar-denominated assets. Investors are now focusing on Chinese trade figures due on Thursday, with analysts expecting a small increase in refined imports from April when they fell 16.6 percent on the month to 160,236 tonnes.
China is the world's top consumer of base metals, accounting for nearly 40 percent of copper demand last year. "I am quite optimistic about the Chinese data," Briesemann said. "I think we could see the downward trend come to an end or at least slow down." Also supporting prices, a strike at the world's fifth-largest copper mine, Chile's El Teniente, looked set to extend into a fourth day, while heavy rains disrupted some operations at Teck Resources operations in Chile, analysts said. "Copper looks set to receive some support from the strike at the El Teniente mine and the closure of the Andacollo mine due to rain," RBC Capital said in a note.
The nickel market looks like it will soften over the next few months as European stainless consumers hold off metals purchases in part due to slow demand, but also falling prices, a physical nickel trader said. "If this were 10 years ago and it were a pure supply and demand game, then I'd be selling it ...but stronger copper and the euro are maintaining the complex," the trader said. Nickel ended at $22,625 a tonne compared with a close of $22,630 on Monday.
Three-month tin finished at $25,825 from $26,005 while zinc , used in galvanising steel, closed at $2,272 unchanged from Monday's close. Battery material lead was at $2,548 from $2,502 and aluminium, untraded in rings, was bid at $2,686 from a $2,660 close on Monday.