ANL 11.20 Decreased By ▼ -0.25 (-2.18%)
ASC 9.71 Decreased By ▼ -0.09 (-0.92%)
ASL 12.00 Increased By ▲ 0.65 (5.73%)
AVN 80.00 Increased By ▲ 1.70 (2.17%)
BOP 5.94 Increased By ▲ 0.11 (1.89%)
CNERGY 5.70 Increased By ▲ 0.16 (2.89%)
FFL 6.85 Decreased By ▼ -0.12 (-1.72%)
FNEL 6.26 Increased By ▲ 0.11 (1.79%)
GGGL 12.10 Decreased By ▼ -0.05 (-0.41%)
GGL 16.89 Increased By ▲ 0.07 (0.42%)
GTECH 9.45 Decreased By ▼ -0.20 (-2.07%)
HUMNL 7.00 Increased By ▲ 0.35 (5.26%)
KEL 2.68 Increased By ▲ 0.12 (4.69%)
KOSM 3.09 Increased By ▲ 0.09 (3%)
MLCF 27.50 Increased By ▲ 0.25 (0.92%)
PACE 3.09 Decreased By ▼ -0.01 (-0.32%)
PIBTL 5.99 Decreased By ▼ -0.12 (-1.96%)
PRL 17.58 Decreased By ▼ -0.30 (-1.68%)
PTC 7.62 Decreased By ▼ -0.53 (-6.5%)
SILK 1.29 Decreased By ▼ -0.14 (-9.79%)
SNGP 27.40 Increased By ▲ 1.31 (5.02%)
TELE 11.64 Decreased By ▼ -0.12 (-1.02%)
TPL 9.90 Increased By ▲ 0.01 (0.1%)
TPLP 18.62 Increased By ▲ 0.94 (5.32%)
TREET 29.70 Decreased By ▼ -0.40 (-1.33%)
TRG 81.11 Decreased By ▼ -0.57 (-0.7%)
UNITY 22.48 Decreased By ▼ -0.79 (-3.39%)
WAVES 13.45 Decreased By ▼ -0.05 (-0.37%)
WTL 1.56 Decreased By ▼ -0.04 (-2.5%)
YOUW 5.09 Decreased By ▼ -0.01 (-0.2%)
BR100 4,262 Increased By 29.5 (0.7%)
BR30 15,499 Increased By 12.7 (0.08%)
KSE100 42,861 Increased By 319.7 (0.75%)
KSE30 16,276 Increased By 133.1 (0.82%)
Markets

Stronger dollar and new COVID-19 cases drag metals lower

  • Investors fretting about the impact of a sharp rise in cases in Europe kept the dollar near two-month highs.
  • Three-month copper on the London Metal Exchange was down 0.8% at $6,551 a tonne at 1650 GMT after touching its lowest since Aug. 18.
24 Sep, 2020

LONDON: Copper fell to a one-month low on Thursday as the US dollar strengthened, sapping demand for commodities priced in the currency and on concerns that fresh cases of coronavirus could hamper global economic recovery.

Investors fretting about the impact of a sharp rise in cases in Europe kept the dollar near two-month highs.

Three-month copper on the London Metal Exchange was down 0.8% at $6,551 a tonne at 1650 GMT after touching its lowest since Aug. 18.

"The stronger dollar is not helping commodities. Metals are taking their cues from the falling stock markets," said independent analyst Robin Bhar.

A stronger US currency makes dollar-priced metals more expensive for holders of other currencies, which can lower demand.

"But I see this as a healthy correction... nothing goes up in a straight line forever so this is a good buying opportunity. The fundamentals for copper are pretty solid," Bhar said.

An economic recovery from the coronavirus pandemic, speculative buying and supply disruptions have pushed copper up 50% since a March low. On Monday, it touched its highest since June 2018 at $6,877.50.

INVENTORIES: The premium for cash copper over the three-month contract has fallen to $3,75 from $40 a week ago, despite low stocks of copper in LME-registered warehouses.

On-warrant copper stocks are at 28,825 tonnes, their lowest since March 2019 and down about 90% since May.

SUPPLY: Global copper smelting activity recovered in August, mainly due to a jump in activity in North America, data from satellite surveillance of copper plants showed.

NICKEL: The global nickel market surplus narrowed to 8,900 tonnes in July from an upwardly revised 14,700 tonnes the previous month, the International Nickel Study Group said on Wednesday.

TIN: Tin prices are due to extend their rally next year as top consumer China stocks up on the metal due to a recovery in demand for electronic goods.

ECONOMY: The number of Americans filing new claims for unemployment benefit unexpectedly increased last week.

PRICES: Aluminium eased 0.4% to $1,748 a tonne, zinc shed 0.4% to $2,394, lead was down 0.8% at $1,863, tin dropped 2.3% to $17,435 while nickel fell 0.6% to $14,345.

Comments

Comments are closed.