Copper ends lower

Copper closed lower on Wednesday on lingering investor concerns over the eurozone debt crisis and poor spot demand from top consumer China, but a softer dollar, tight supplies and good demand prospects kept the metal within sight of a record high.
Three-month copper on the London Metal Exchange , closed at $9,755 a tonne, 0.85 percent down from a close of $9,840 per tonne on Tuesday, when it touched its highest since April 11 at $9,873.50.
"As much as people are still upbeat on copper in the long term there is still uncertainty over what is going to happen with the debt crisis in Europe," said Andrey Kryuchenkov of VTB Capital.
"Copper stocks have gone up lately after an improvement in early June, and this shows that there is not enough spot demand yet...there is no immediate shortage of the metal."
In the United States, groundbreaking for homes rose to a six-month peak, offering hope for the battered construction industry and the general health of the world's largest economy. Copper is used widely in the construction industry.
"This is just a glimpse of positive data after a lot of negative news," Kryuchenkov said adding that although long term fundamentals for copper remained positive, driven by infrastructure building and urbanisation in China, macro data was affecting market sentiment.
Base metals prices were little changed after data showed US June existing home sales fell to 4.77 million units from 4.81 million units in May.
The euro rose against the dollar on cautious optimism that eurozone leaders may reach a deal to ease Greece's debt problems, but gains were seen limited on doubt that this would ease fears of contagion.
A weaker dollar makes commodities cheaper for holders of other currencies.
Falling production and lower ore grades, combined with strikes and floods in producing countries, have also supported the outlook for metals prices.
Global miner Rio Tinto reported mined copper output was down 24 percent on the second quarter of 2010, mainly reflecting lower grades at its 30 percent-owned Escondida mine and Kennecott Utah Copper division.
"Certainly heading into reporting season what has been apparent is the continuing struggle in the copper industry to deliver volume," RBS analyst Daniel Major said. "This highlights a broader theme across the industry."
Lead, used to make batteries, closed at $2,700 per tonne, from $2,770. It hit $2,779 on Tuesday, its highest since mid-April.
May data released by the International Zinc and Lead Study Group (ILZSG) showed a tightening balance in the refined lead market, Credit Suisse said in a note.
"The ILZSG stated the surplus at a small 6.8 kt (thousand tonnes) in May, which marks a strong improvement from the 46.1 kt surplus observed in April," Credit Suisse said.
Zinc, used in galvanising, finished at $2,454 per tonne from $2,490 at the close on Tuesday. Aluminium ended at $2,536 from $2,550, tin at $28,300 from $27,890 and nickel at $24,045 from a last bid of $24,100.