London copper slips on firmer dollar, China slowdown fears

Reuters September 11, 2019

BEIJING: London copper prices dipped in early Asian trade on Wednesday, as the entire base metals complex was pulled down by a stronger dollar and lingering concerns over a slowdown in top consumer China.

A stronger greenback makes dollar-denominated metals more expensive for holders of other currencies.

FUNDAMENTALS

* COPPER: Three-month copper on the London Metal Exchange was down 0.5% to $5,798 a tonne, as of 0215 GMT, after ending 0.2% higher in the previous session. The most-traded November copper contract on the Shanghai Futures Exchange slipped 0.3% to 47,230 yuan ($6,635.10) a tonne.

* COPPER: Refined copper cathode production by major Chinese smelters fell by 0.5% in August from a month earlier, according to a survey of producers by research house Antaike.

* CHINA: China’s factory-gate prices shrank at the sharpest pace in three years in August, falling deeper into deflationary territory and reinforcing the urgency for Beijing to step up economic stimulus as the trade war with the United States intensifies.

* PERU: An indefinite strike by mining unions in Peru that started on Tuesday has failed to draw large numbers of workers and has not affected output at mines in the world’s No.2 copper, zinc, and silver producer, an industry association said.

* OTHER METALS: LME lead fell the furthest, shedding 0.9% to $2,081.50 a tonne, while tin lost 0.7% and nickel slipped 0.5%.

* NICKEL: The Asian Nickel conference kicks off in Jakarta on Wednesday, just days after Indonesia confirmed it would expedite a ban on nickel ore exports to the start of 2020.

* ALUMINIUM: Norsk Hydro, one of the world’s largest aluminium producers, said it would close some production in Germany and could lay off more than 700 workers in a bid to increase profitability at its rolled products business.

 

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