METALS-Copper closes at 2-month low after U.S. jobs data

 NEW YORK/LONDON, Copper prices closed on
Friday at their lowest level since early August after weak jobs data
from the United States eroded confidence in demand prospects and
reinforced worries about the pace of economic recovery.

 Copper for December delivery HGZ9 on the New York Mercantile
Exchange's COMEX division sank 5.55 cents, or 2 percent, to finish
at $2.6815 a lb, its lowest level on a settlement basis since July
31.

 On the London Metal Exchange (LME), benchmark copper MCU3 shed
$106 to end at $5,879 a tonne, after sinking earlier to a session
trough at $5,810, its lowest since Aug. 3.

 The metal used in power and construction is down about 10
percent since a 10-month high of $6,549 on Aug. 28.

 Latest U.S. jobs data showing employers cut a deeper-than-
expected 263,000 jobs in September fueled fears that a weaker labor
market could derail the economy's recovery from its worst recession
since the Great Depression. [ID:298878]

 "These numbers tell me that we're going to, very quickly and
quite easily, break that ceiling of double-digit unemployment," said
Michael Pento, chief economist with Delta Global Advisors.

 The weaker-than-expected jobs figure capped a week of poor data
-- most notably, a surprise dip in Institute for Supply Management
manufacturing index, unexpectedly weak September Chicago Purchasing
Managers Index data, and 23 percent drop in September auto sales.

 "What we're seeing from the data is that all of this recovery
was artificial," Pento said. "The V-shaped recovery will be one
quarter. We'll see a Q3 print of around 3 percent, and I think it
will be a one quarter wonder."

 Sentiment took a further hit after data showed U.S. August
factory orders record their first drop in new orders in five months.
[ID:nN01278237]

 "There are fears creeping into the U.S. economy and there is
nervousness over the continuation of Chinese stimulus  packages,"
said Sucden Financial analyst Steve Hardcastle. But he added copper
is still underpinned by labor problems at mines.

 These include a worker stoppage at the northern Chilean port of
Antofagasta and a decision by workers at Chile's Spence copper mine
to strike. [ID:nN01295665] [ID:nN01410494]

 ALCOA PRICE HIKE

 Three-month aluminum MAL3 ended at $1,804 a tonne from $1,858
on Thursday.

 The average forecast for the aluminum market surplus this year
is about 1.7 million tonnes, according to a Reuters survey of
analysts in July. COMMODITYPOLL01

 That surplus could be revised up if auto industry conditions
deteriorate further, but some believe the outlook for aluminum is
improving.

 "We note with interest Alcoa's increase in U.S. rolled product
conversion prices as we believe this is yet further evidence of
improving domestic demand," Barclays Capital said in a note.
[ID:nN30227862]

 Battery material lead MPB3 fell to a two-week low of $2,070 a
tonne, before settling down $80 at $2,115 a tonne.

 Stainless steel ingredient nickel MNI3 ended down $135 at
$17,290 a tonne, while zinc MZN3 eased $33 to finish at $1,880.
Tin MSN3 closed up $75 at $14,275 a tonne.

 Tin earlier fell to a one-month low of $13,700 on market talk
that a dominant position controlling more than 90 percent was
perhaps being scaled back. 

 Easing worries about nearby supplies were also reflected in the
premium for cash material over the three-month contract MSN0-3,
down at around $550 a tonne from $730 last week.

 For a factbox on LME investigations click: [ID:nLU103114]

 Metal Prices at 1847 GMT
Metal            Last      Change  Pct Move   End 2008   Ytd Pct

                                                         move
COMEX Cu       267.20       -5.35     -1.96     139.50     91.54
LME Alum      1817.00      -41.00     -2.21    1535.00     18.37
LME Cu        5897.50      -87.50     -1.46    3060.00     92.73
LME Lead      2156.00      -39.00     -1.78     999.00    115.82
LME Nickel   17390.00      -35.00     -0.20   11700.00     48.63
LME Tin      14200.00        0.00     +0.00   10700.00     32.71
LME Zinc      1885.00      -28.00     -1.46    1208.00     56.04
SHFE Alu     14835.00      130.00     +0.88   11540.00     28.55
SHFE Cu*     48190.00     1720.00     +3.70   23840.00    102.14
SHFE Zin     15330.00      240.00     +1.59   10120.00     51.48
** 1st contract month for COMEX copper * 3rd contract month for
SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07

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