Copper prices gained on a softer dollar on Friday, but were set for the first decline in five weeks on risk-off sentiment as the Chinese markets are closed for a public holiday.
Three-month copper on the London Metal Exchange (LME) was up 0.3% to $9,794 per metric ton by 0645 GMT, aluminium edged up 0.1% at $2,529.50 and nickel advanced 0.6% to $18,755.
LME zinc advanced 0.2% to $2,892 a ton, lead was up 0.5% at $2,190.50 and tin increased 0.3% to $31,060.
“Copper remained below the $10,000 a ton level, testing the robust trend support at $9,790. A drop below this threshold could lead to further price corrections,” Sucden Financial analysts said in a note.
“Additionally, as Chinese markets reopen on Monday (May 6) after the holiday, we believe that any sustained risk-off mood could exacerbate declines due to increased market activity,” the analysts said.
Chinese markets are closed for the Labour Day holiday from May 1-3.
On a weekly basis, all base metals except zinc were heading for a decline.
LME copper was set to snap four straight weeks of gains, down l.7% so far this week.
Aluminium was down 1.6% week-on-week, nickel has lost 1.8% so far, lead eased 0.8% and tin dropped 4.2%. Zinc bucked the trend to rise 1.7% so far this week.
Copper rises to trade near $10,000/T on softer dollar
Tightness in mining supply has lent prices some support, but a restart of Nyrstar’s Budel, scheduled for later this month, has eased the supply tightness.
LME aluminium cancelled warrants - or metals earmarked for delivery - dropped by a quarter in just one day to 269,250 tons as of Wednesday, potentially easing supply tightness pressure, latest exchange data showed.
LME nickel inventories climbed to 78,780 tons by Wednesday, a surge from November last year when stockpiles were only around 40,000 tons.
Comments
Comments are closed for this article.