Copper Falls in London Before U.S. Factory Report: LME Preview

Feb. 16 (Bloomberg) -- Copper fell for a second day in London before a government report that may show slower growth in U.S. industrial production, curbing demand for industrial metals.

Market News:

-- Asian stocks gained, with Japan’s Topix index posting its longest winning streak since August 2009, and the euro rose on speculation economic reports will signal a stronger global recovery. Japanese government bonds fell. {NSN LGP56L1A74E9 <GO>}

-- The yen and dollar weakened versus most of their major counterparts before reports that economists said will show U.S. factory output and European consumer confidence increased, damping demand for safer assets. {NSN LGP4RM6S972B <GO>}

-- Treasuries fell before Federal Reserve and government reports today that economists said will show manufacturing and producer prices gained, as an index of bonds around the world headed for a sixth monthly loss. {NSN LGP2XG07SXKX <GO>}

-- Corporate America is putting its cash hoard back to work. {NSN LGOY4L6JTSEA <GO>}

-- China’s stocks rose to a two-month high as industrial companies and steelmakers rallied on improving earnings prospects, overshadowing declines for property developers on concerns about tightening policies. {NSN LGOZTY1A1I4H <GO>}

Metals News:

-- Jiangxi Copper Co. fell 2 percent to 41.5 yuan in Shanghai trading after a report said China will issue a new policy to strengthen management in the rare earth industry and control the scale of the mines. {NSN LGOS756K50XY <GO>}

-- Norsk Hydro ASA, Europe’s third-largest aluminum producer, reported fourth-quarter net income of 620 million kroner, compared with a loss of 569 million kroner a year earlier. {NSN LGPA360D9L35 <GO>}

-- PT International Nickel Indonesia plans to shut down its nickel smelter in Soroako in Sulawesi in the first half of this year because of maintenance work, Jannus Siahaan, a spokesman at the Indonesian nickel producer, said in Jakarta today. {NSN LGOZJP6S9728 <GO>}

-- Metals demand in India, Asia’s second-fastest growing major economy, may double in five years and remain robust for a decade, fueled by rising car sales and higher spending on infrastructure projects, analysts said. {NSN LGOPK507SXKX <GO>}

-- Pan American Silver Corp. expects to produce 23 million ounces to 24 million ounces of silver in 2011, a decline of about 3 percent from 2010 production levels. {NSN LGP1BC6S972C <GO>}

-- Palladium will climb to levels last seen when Russia disrupted supplies a decade ago as soaring Chinese auto sales drive up demand for the metal used in pollution-control devices, ABN Amro Securities Asia Ltd. said. {NSN LGNJYP0UQVI9 <GO>}

-- BHP Billiton Ltd., the world’s largest mining company, damped talk that it’s looking to make major acquisitions, instead committing to spend $80 billion to expand and develop its own mines and oil fields. {NSN LGP4XS1A74E9 <GO>}

-- Kobe Steel Ltd., Japan’s fourth-largest maker of the alloy, is “likely to be at the center” of moves by the nation’s producers to combine, Citigroup Inc. said, upgrading the stock to a “Buy.” {NSN LGP3J607SXKX <GO>}

-- China’s steel output may rise 5 percent to 660 million metric tons this year, the Ministry of Industry and Information Technology said in a statement on its website today. {NSN LGP34B6JTSEF <GO>}

(Source: http://www.businessweek.com/news/2011-02-16/copper-falls-in-london-before-u-s-factory-report-lme-preview.html)