Copper declines

Copper fell on Thursday on a stronger dollar and concerns about demand in the United States after the Federal Reserve cut its forecasts for economic growth in the world's largest economy. Data showing big metal consumer China's factory sector was close to stalling and Greece's debt crisis also soured sentiment.
Three-month copper on the London Metal Exchange closed at $8,960 a tonne from $9,020 at Wednesday's close. News that China's factory growth nearly stalled in June on weakening global demand was a further signal to investors to trim from their portfolios assets that are seen vulnerable to volatility.
But metals demand is showing signs of picking up in China, the world's largest consumer of copper. Aurubis, Europe's largest copper producer, said China's copper imports are expected to rise in the second half of this year as it uses up its domestic stocks. "Looking at inventory developments in China, we see further evidence that demand in the physical market is picking up," Credit Suisse said in a research note. Bonded stockpiles, metal held in private storage, in China have fallen by around 50 percent over the last two months.
Nickel was untraded at the close but bid at $22,125 a tonne from $22,150. The stainless steel material has fallen since peaking at just under $29,500 in February, and could come under more pressure as mining companies race to increase production. The Australian unit of China's Minmetals said it had received interest from outside parties to operate its mothballed Avebury nickel mine in Australia.
An expected nickel supply deficit of around 30,000 tonnes this year, against consumption of 1.59 million tonnes, could reverse into a 25,000-tonnes surplus in 2012, and an 80,000-tonne surplus in 2013, according to BNP Paribas. Lead ended at $2,549 a tonne from $2,544. Lead production cuts in China after a crackdown on polluting plants launched in May and a growing supply-demand gap will extend into July as more units shut or curtail output for repairs and cleanup, industry sources said. Aluminium hit a one-month low of $2,490 a tonne before closing at $2,509 and zinc ended at $2,260 a tonne from $2,253.5. Tin ended at $25,200 a tonne from $25,345.