By: Eddie van der Walt

London 19/10/2012 - Base metals were down around one percent in Friday's LME premarket while LME Week draws to a close.

Further negative data from China has piled further pressure on prices - foreign direct investment in the year to date fell 3.8 percent on last year.

"For the base metals there seems to be a tug-of-war between whether China’s growth will slip further or whether infrastructure spending will lead to restocking," FastMarkets analyst William Adams said.

"The metals will probably continue to consolidate but we are wary that Western stock markets could undergo a correction; if so, it is likely to drag metals down too," he added. "All in all, it looks like we are still in a waiting game."

The market was undeterred yesterday by a further fall in China's GDP figure for the third quarter - its seventh consecutive quarterly  fall - with the slower decrease in the rate of growth seen as a sign that it is approaching a bottom and a soft landing.

In Europe, a two-day summit of EU leaders continues - they reached agreement on a banking union yesterday. The eurozone's new banking supervisor is likely to be legally established by the end of this year and in active operation some time in 2013. Rumours from the conference are that Greece is also close to reaching agreement with its creditors, effectively remaining in the euro.

In the US, further positive data from the housing market has been taken as a sign of recovery. A further read is expected later today, with existing home sales likely to come in at 4.73 million.

In company news, rumours are growing that ArcelorMittal, the world's largest steelmaker, is preparing to sell its 10-billion-pound stake in Canadian iron ore producer Quebec Cartier Mining.

Broadly, equities are mixed, with the FTSE 100 and the Dax down but Asian indicators gaining ground. In commodities, gold is lower at $1,733.30 per ounce but Brent crude oil is firmer at $112.70, up 30 cents.

In currencies, the euro has retreated further from Wednesday's one-month high against the dollar - it was last at 1.3054. The dollar index is firmer at 79.44.


METALS UNIFORMLY LOWER

Copper was last at $8,116.75 per tonne, down $103.25 or more than one percent. As of 10:00 BST, little more than 4,600 lots had changed hands on Select.

Warehouse inventories dropped a net 4,250 tonnes to 220,900 tonnes, with a drawdown of 4,100 tonnes in Busan. Cancelled warrants fell 6,025 tonnes to 38,125 tonnes.

Aluminium is also lower, down $15 at $2,000, with fewer than 2,800 lots traded on Select. Aluminium stocks are also lower, falling 9,325 tonnes to 5,039,125 tonnes. Detroit had a net outflow of 2,400 tonnes and Vlissingen 3,000 leave. Cancelled warrants dipped 12,100 tonnes to 1,745,950 tonnes.

Lead was last at $2,132, down $25. Following last week's sharp increase, inventories are again trending lower, falling 1,600 tonnes to 293,675 tonnes today, with the bulk leaving Johor. Cancelled warrants are 3,600 tonnes higher at 111,050 tonnes.

Tin was last also lower, down $275 to $21,500. Stocks rose 35 tonnes to 11,615 tonnes with cancelled warrants 675 tonnes lower at 4,045 tonnes.

Nickel fell $240 or nearly 1.5 percent to $17,080. Inventories increased 348 tonnes to 127,500 tonnes, with cancelled warrants rising 204 tonnes to 12,546 tonnes.

Zinc fell $22.50 or about 1.2 percent to $1,898.50. Stocks fell 550 tonnes to 1,116,075 tonnes, while cancelled warrants increased by 1,625 tonnes to 375,600 tonnes.

Steel billet was last quoted at $325/360, with stocks falling 1,170 tonnes to 117,520 tonnes.

In the minor metals, cobalt is quoted at $26,500/28,000 and molybdenum at $23,000/26,000. Inventories of both are unchanged.


(Editing by Mark Shaw)