LONDON: Copper prices fell on Thursday as worries about growth and demand were reinforced by the second wave of Covid-19 and lockdowns in Europe while the market awaits the result of next week’s US presidential election.
Benchmark copper prices on the London Metal Exchange briefly turned positive after data showed the US economy grew at a historic pace in the third quarter, but by 1602 GMT they were down 0.4% down at $6,720.
“There has been an astounding deterioration in the coronavirus situation pretty much around the world, with the Far East being a notable exception,” said ED&F Man Capital Markets analyst Edward Meir.
Copper is struggling to hold above support at $6,725-$6,730, where the 21-day moving average currently sits. A sustained break below will meet support at $6,690, the 50-day moving average.
Stocks of the soldering metal in LME-registered warehouses, at 4,575 tonnes, are down more than 15% since Oct. 16 and at their lowest since August.
Worries about supplies on the LME market have created a premium for the cash contract over three-month metal. It rose to $29 a tonne last week, the highest since late July, and was last at $6 a tonne.
Three-month tin was down 0.6% at $17,820 a tonne.
Aluminium was down 0.5% at $1,801 a tonne, zinc gained 0.3% to $2,537, lead climbed 2.1% to $1,831 and nickel slid 1.5% to $15,500.—Reuters
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