Copper sinks to lowest in nearly two weeks, lead hits month peak

LONDON: Copper fell on Wednesday, joining a sell-off in shares, oil and other commodities on disappointment that US President Trump was failing to

implement plans to cut taxes and boost infrastructure spending.

Lead bucked the trend, however, hitting the highest in more than a month, after available LME inventories slid by 36 percent, creating worries about short-term supply.

"We seem to be having a bout of profit taking set against some falls in equity markets and some risk aversion," said Robin Bhar, head of metals research at Societe Generale in London.

"There looks to be a reassessment taking place since Trump hasn't said very much lately about tax cuts or infrastructure spending and markets are probably running out of patience," he added.

"I think it's a correction rather than any more than that. We're heading into the second quarter and the markets are still well positioned to get some more modest gains."

FUNDAMENTALS

COPPER: Three-month copper on the London Metal Exchange shed 0.6 percent to $5,741 a tonne in official open outcry trading, extending losses from the previous session. Earlier in the day, prices hit their weakest since March 10 at $5,715 a tonne, but found support at the 100-day moving average ($5,722).

MARKETS: Shares fell, driving investors to the safety of government debt, gold and the yen, as doubts grew that Trump can deliver on a promise of tax cuts that had powered stocks markets to record highs.

CHINA SMELTERS: Copper stocks in China's Shenzhen are seen as ample, while Chinese smelters are still not rushing to buy spot copper concentrate shipments, a smelter source said.

COPPER SPREADS: LME cash copper prices traded at their steepest discount to three-month prices since Jan. 18, data showed, which was the widest since June 2015, suggesting the refined market is still in ample supply.

<Center><b><i>Copyright Reuters, 2017</b></i><br></center>