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Print[Ferro-Alloys.com] London copper prices slipped on Thursday but did not stray too far from a 1-1/2 month high scaled in the prior session on hopes the European Central Bank will unveil a new bond buying plan to combat the region's debt crisis at a meeting later in the day.
Leaks before the meeting gave investors confidence that the ECB will launch more decisive moves, spurring appetite for riskier assets and sending London copper to USD7,750 a tonne on Wednesday, its highest since late July.
But analysts and traders were sceptical about whether any action by the ECB would have a long-lasting effect on prices of industrial metals, given their weak fundamentals.
"In the short term, decisive actions by the ECB will boost copper prices, but the medium-to-long term fundamentals will weigh on market sentiment," said Zhang Ao, an analyst at Minmetals Futures in the southern Chinese city of Shenzhen.
Three-month copper on the London Metal Exchange lost 0.4 percent to USD7,710 per tonne by 0302 GMT.
Though LME copper stocks have dropped for six sessions straight on Sept.5, hitting their lowest level since October 2008, traders said demand for the industrial metal on the physical market remained sluggish. MCU-STOCKS
"There is very little demand when prices rise above 56,000 yuan," said a Shanghai-based trader. "The premium on imported copper is only about USD 50, reflecting low buying interest."
The ratio of cancelled warrant -- material earmarked for delivery -- to total LME stocks stood at a two-month low of 14.16 percent.
Investors will also closely watch the U.S. non-farm payrolls data due Friday, which is expected to shed light on whethe r the Federal Reserve will announce further stimulus measures at its policy meeting next week.
LME aluminium fell 0.6 percent to USD1,960, easing from a two-month high of USD1,972 hit in the previous session. (Source: Reuters)
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