Copper steadies

Copper ended almost flat on Thursday as expectations of higher demand from top consumer China balanced against US jobless claims data that signalled further slowing in the economy. Benchmark copper on the London Metal Exchange closed at $9,055 a tonne, from $9,045 a tonne at the close on Wednesday.
Boosting the metal was news that copper exports from Peru, one of the world's leading mineral exporters, fell in April and that protests resumed by Peruvian Indians demanding a halt to all mining in the southern region of Puno. The metal fell to a session low of $8,932 after data showed US jobless claims had risen unexpectedly last week and the European Central Bank's Jean-Claude Trichet signalled an interest rate rise is probably a month away. "The jobs data was a little worse than expected, but I don't think that's a major surprise. We are definitely slowing down and we are going to start seeing poorer numbers over the next few weeks," MF Global analyst Edward Meir said.
China, which accounts for about 40 percent of global copper consumption, releases trade data on Friday. Its refined copper imports have slumped this year, but some market participants say underlying demand is still intact. "Base metal prices and especially copper will be supported by Chinese import data, which should be better given the sharp destocking over the last couple of weeks in Shanghai," said Daniel Briesemann, an analyst at Commerzbank.
Behind predictions of higher imports are copper stocks in Shanghai bonded warehouses, which are said to have fallen by about 200,000 tonnes from April to between 350,000 and 500,000 tonnes now. "It looks like China is going to need more copper very soon. Those stocks will need to be replenished," a LME trader said.
Firmer copper prices in China are also expected to help. While output at the world's No 5 copper mine, El Teniente in Chile, rose after nearly half of the contractors on strike ended a work stoppage, global supply remained a concern. Credit Suisse Private Banking said in a note that copper mine supply "remains an upside risk factor as global expansion is struggling to keep pace with demand and ore grades at major existing mines are falling".
However, stocks of copper in LME warehouses are still rising and are at a one-year high of 477,850 tonnes. Supply constraints and solid demand also helped lead rise to $2,610, its highest since April. It closed at $2,609 from $2,577 on Wednesday. Three-month aluminium closed at $2,660 a tonne from $2,668 at Wednesday's close. Zinc was $2,285 from $2,293, and nickel was $23,200 from $22,705, with tin at $25,705 from $25,695.