METALS-Copper dips after data shows Japan in recession

Mon Nov 17, 2014 12:27pm EST
 
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* Chinese Oct refined copper output up 13.6 pct at 732,746 T

* Philippine nickel ore exports down in Nov -analyst (Updates with closing prices)

By Eric Onstad

LONDON, Nov 17 (Reuters) - Copper and other base metals dipped on news that Japan had slipped into recession, but nickel, aluminium and lead recovered and closed higher, supported by forecasts of developing shortages.

Many metals on the London Metal Exchange fell after news that economic output had fallen for two successive quarters in Japan, one of Asia's biggest commodity importers.

But losses were limited, and three of the six major LME metals rebounded. Five of them are expected to have a supply/demand deficit next year, with copper the only one seen in surplus, according to forecasts by analysts polled by Reuters.

"On a fundamental basis, we continue to think that metals with deficits will still be able to outperform," said Nicholas Snowdon, metals analyst at Standard Chartered in London.

"But we remain in a period of heightened macro uncertainty, which is constraining the potential upside to base metals prices."

Three-month LME copper slipped 0.01 percent to end at $6,704 a tonne after earlier climbing to its highest since Nov. 4 at $6,734 a tonne. In the previous session it gained 0.8 percent.   Continued...