Copper steadies

Copper steadied on Friday as worries about the US debt crisis escalated and data showed lower-than-expected US growth, cutting gains from a surge early in the day to its highest in more than three months as uncertainty about supplies from top producer Chile spurred buying.
Benchmark copper on the London Metal Exchange closed at $9,820 a tonne, up 0.05 percent from $9,815 at the close on Thursday. The metal used in power and construction earlier touched $9,895 a tonne, its highest since April 11. It fell to a session low of $9,702 after data showed economic growth in the United States was short of expectations in the second quarter as consumer spending barely rose amid higher gasoline prices. The first-quarter figure also was revised sharply lower. "It's clear that we are nowhere near the end of macro data having an impact on copper prices," said Barclays Capital analyst Gayle Berry.
"There are still a number of big macro issues that need to be addressed, such as the US debt crisis, tighter Chinese monetary policy and manufacturing data. Metals are going to be subject to volatility and disappointment sometimes." Eyes are on the United States where Republican leaders will scramble to rescue a budget deficit-cutting plan on Friday after conservatives mounted a rebellion that heaped uncertainty on efforts to avert a default.
Copper prices were boosted by a strike at Chile's Escondida copper mine, which halted concentrate sales on Wednesday, reinforcing fears about shortages of the metal. However, Escondida union said on Friday strikers at the mine and owner BHP Billiton are not far from a deal to end an eight-day strike.
The United States is the world's second-largest copper consumer after China, which accounts for about 40 percent of global demand estimated at 21 million tonnes this year. China for much of the year so far has been absent from the international market, but analysts expect the country's consumers to come back to the market.
That will eventually be reflected in stocks of copper in LME-registered warehouses, which at 466,550 are down more than 11,000 tonnes since early June. Traders are looking at cancelled warrants - material tagged for delivery - in Asian warehouses, particularly in South Korea, a location from which copper travels to China.
Aluminium stocks in LME-approved warehouses stand at 4.45 million tonnes, down from record highs above 4.7 million tonnes in May. Stocks of deliverable aluminium in warehouses monitored by the Shanghai Futures Exchange (SHFE) fell more than 10 percent to 181,715 tonnes. Three-month aluminium finished at $2,624 a tonne from $2,638 at the close on Thursday, zinc at $2,490, from $2,519 and lead at $2,613 from $2,655 a tonne. Tin closed at $28,100 from $28,500 and nickel at $24,995 from Thursday's last bid at $24,550.