Copper slips on rise in Shanghai inventories

LONDON: Copper slipped on Monday as the dollar recovered and investors eyed an increase in Shanghai inventories, while zinc and nickel prices tracked renewed weakness in steel markets.
Data on Friday showed copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 4.9 percent on the week, marking three consecutive weeks of gains.
"We had this tightness (in Shanghai copper stocks) but it seems to have eased. More broadly there's no compelling excitement (in copper), there's consensus that second half (growth) in China is going to be slower," said Vivienne Lloyd, analyst at Macquarie.
 COPPER: Benchmark London Metal Exchange copper slipped 0.7 percent to $5,627.50 a tonne by 1009 GMT. Prices have been trapped in a $5,460-$5,770 range since early May.
 CHINA: Activity in China's services sector expanded at the fastest pace in four months in May thanks to a surge in new orders, a private business survey showed, helping to offset worries about unexpected weakness in manufacturing. China accounts for roughly half the world's copper use.
COPPER SUPPLY: Freeport McMoRan Inc said last month that mining and milling rates at its Grasberg copper mine in Indonesia had been affected by an extended strike.
 ELECTRIC CARS: China agreed to delay an 8 percent quota for electric and hybrid vehicles by a year until 2019 in a major concession for German carmakers seeking to expand in the world's largest auto market. Electric cars are a major growing demand segment for copper.
 STEEL: Shanghai rebar ended 3.9 percent lower on Monday, marking eight consecutive days of falls, with traders brushing aside news of a new campaign to cut steel capacity in Tangshan.