(02/04) UPDATE 1-LME copper falls 2.4 pct in 1st quarter, aluminium up

April 02, 2011

Copper fell 2.4 percent in the first quarter of the year, its first quarterly loss since June, dented by slowing demand from China and rising inventories in warehouses.
Aluminium rose 7.2 percent and tin surged 18.3 percent. Lead and nickel also rose in the quarter to the end of March, while zinc fell.
LME copper ended the first quarter at $9,430 per tonne versus $9,660 at the end of the last quarter on Dec. 31, 2010. The metal used in power and construction is more than 7 percent off the record high $10,190 it hit last month.
"The Chinese market has hit a soft spot lately, reflected in the sharp fall of physical premiums and more metal delivered in LME and Shanghai warehouses," said Duncan Hobbs, an analyst at Macquarie. "All these things reflect that the market is definitely soft at the moment."
China's imports of refined copper tumbled 36 percent to a 27-month low in February as demand dwindled. Compounding concerns about weak physical demand, latest data shows stocks of copper rose 125 tonnes to a total 439,850 tonnes after steadily climbing since December. Since Japan's earthquake and tsunami, copper has gained some support from investors shifting their focus to the country's need to rebuild infrastructure.