Cooper Metals – METALS-Copper rebounds as Evergrande worries fade

(Updates with official prices)

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 limited.

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 Wednesday.

* Canadian miner Teck Resources Ltd cut its forecast for annual refined zinc production due to wildfires in British Columbia.

* 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 or (Additional reporting by Mai Nguyen in Hanoi, Editing by Louise Heavens and Bernadette Baum)