LONDON, Sept 21 (Reuters) - Copper prices bounced on Tuesday
as investors cautiously dipped back into a market shaken by
worries that troubles at China's debt-laden Evergrande Group
could seep into the global economy.
Industrial metals followed other risky assets such as shares
and oil in stabilising after a sell-off on Monday as confidence
grew that any contagion from the distress of Evergrande would be
Three-month copper on the London Metal Exchange
gained 0.8% to $9,106.50 a tonne in official trading after
hitting its lowest since Aug. 20 on Monday at $8,975. The
contract has lost about 5% so far this month.
"There's a general worry about the strength of the global
economy, but we've got the S&P (futures) trading 1% higher this
morning and the bouncing stocks are inviting risk appetite back
into the market," said Ole Hansen, head of commodity strategy at
Saxo Bank in Copenhagen.
"The short term outlook for copper is whether we can stay
above that $9,000 level and avoid some additional long
liquidation based on short-term developments, while the longer
term outlook remains as positive as it has ever been."
LME copper would have to regain $9,225 to avoid further
losses, Hansen added.
Investors were also on alert for a faster pace of stimulus
tightening in the United States, as central bank officials there
entered a two-day meeting that is due to conclude on Wednesday.
Chinese markets are closed for a holiday and will reopen on
* Canadian miner Teck Resources Ltd cut its
forecast for annual refined zinc production due to wildfires in
* The global world refined copper market showed a deficit of
90,000 tonnes in June, compared with a surplus of 4,000 tonnes
in the prior month, data showed.
* Europe's largest copper producer Aurubis AG said
its Stolberg copper products plant in Germany would start
resuming some production on Nov. 1.
* LME aluminium gained 0.5% in official rings to
$2,878 a tonne, nickel slipped 0.8% to $18,910, zinc
advanced 0.2% to $3,019, lead rose 0.6% to
$2,168 and tin added 0.4% to 34,050.
* For the top stories in metals and other news, click
(Additional reporting by Mai Nguyen in Hanoi, Editing by Louise
Heavens and Bernadette Baum)