MELBOURNE: London copper traded little changed on Thursday in trade marked by low volumes as the final US presidential debate got underway, while China's steps to cool its real estate market, a key metals user, also dampened buying interest.
China's economy expanded at a steady 6.7 percent in the third quarter, partly fuelled by red-hot growth in property prices, which Beijing is now taking steps to cool down.
China's Guangzhou city will step up its monitoring of irregular activities in its property market while developers in Wuhan will be more closely scrutinised.
"Near-term, the market remains worried about the negative impact of cooling measures on the property market and the ramification on steel and base metals demand, while steel and aluminium production is increasing," said Helen Lau of Argonaut Securities in a report.
Three-month copper on the London Metal Exchange edged up by 0.1 percent to $4,677 a tonne by 0143 GMT. Prices are holding above one-month lows of $4,623.25 a tonne, helped by slowly improving demand from China.
Shanghai Futures Exchange copper was also flat at 37,290 yuan ($5,535) a tonne.
"Weaker LME prices have helped moved the arbitrage and generated more interest as traders seek to import," said broker Triland Metals in a report. Premiums are trading at $65-$70 a tonne compared to $60 a tonne last week, it said.
In other news that could drag on metals prices by propping up the dollar, the European Central Bank is set to keep policy unchanged later in the session but will likely lay the groundwork for more easing in December as it tries to sustain a long-awaited rebound in consumer prices.
A stronger dollar erodes the buying power of those paying for commodities which are priced in dollars, with other currencies.
Global miner Rio Tinto on Thursday cut its 2016 guidance for iron ore shipments by as much as 5 million tonnes after releasing lower third-quarter production data, citing shipping interruptions.
Peru's government failed to restart talks with residents of remote Andean towns blocking a road to one of the country's biggest copper mines on Wednesday, as protesters demanded a meeting with President Pedro Pablo Kuczynski.
Comments
Comments are closed for this article.