LONDON: Copper prices fell on Tuesday to their lowest in two weeks after top metal consumer China failed to convince investors on how its stimulus package would drive the economy to its growth target. Three-month copper on the London Metal Exchange (LME) touched $9,700 a metric ton for the lowest level since Sept. 24.
It was last down 1.6% at $9,774 a ton in official rings. Half-day trading volumes of LME copper surged to a one-week high after China returned from public holidays.
Copper prices hit a four-month high last week after China announced its biggest stimulus package since the COVID-19 pandemic. Analysts had expected bold moves to lift a heavily indebted property sector that has been weighing on consumer confidence.
But a briefing on Tuesday provided little detail on the stimulus other than a repeat of China’s full confidence in achieving its full-year growth target.
Industrial metals fell as the market worried that measures announced so far will only help to stabilise growth but may not be enough to support a rebound, said Ole Hansen, head of commodity strategy at Saxo Bank.
Hong Kong’s Hang Seng index dropped by 9.4% on Tuesday for its heaviest fall since 2008, with record falls in property stocks. The stimulus briefing also ate into gains on blue-chip CSI 300 index. Shares in copper miners, which sell to China, also dropped.
In other metals, LME aluminium lost 2.8% to $2,585 a ton for its biggest decline in more than four months while nickel fell 2.2% to $17,650 despite production disruption at Vale’s Onca Puma nickel plant and the operations of Madagascar miner Ambatovy. Zinc lost 2.2% to $3,106, tin fell 2.4% to $33,100 and lead was down 2.2% at $2,102.
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