AIRLINK 74.40 Decreased By ▼ -0.90 (-1.2%)
BOP 4.95 Increased By ▲ 0.01 (0.2%)
CNERGY 4.34 Decreased By ▼ -0.05 (-1.14%)
DFML 44.73 Increased By ▲ 3.55 (8.62%)
DGKC 87.27 Increased By ▲ 3.96 (4.75%)
FCCL 22.90 Increased By ▲ 1.25 (5.77%)
FFBL 31.65 Decreased By ▼ -0.35 (-1.09%)
FFL 9.36 Decreased By ▼ -0.06 (-0.64%)
GGL 10.10 Increased By ▲ 0.02 (0.2%)
HASCOL 6.77 Decreased By ▼ -0.05 (-0.73%)
HBL 113.60 Decreased By ▼ -0.40 (-0.35%)
HUBC 140.15 Increased By ▲ 1.05 (0.75%)
HUMNL 11.91 Decreased By ▼ -0.09 (-0.75%)
KEL 4.87 Decreased By ▼ -0.04 (-0.81%)
KOSM 4.40 Increased By ▲ 0.04 (0.92%)
MLCF 38.40 Increased By ▲ 0.89 (2.37%)
OGDC 132.80 Decreased By ▼ -0.05 (-0.04%)
PAEL 24.45 Decreased By ▼ -0.40 (-1.61%)
PIBTL 6.53 Decreased By ▼ -0.07 (-1.06%)
PPL 119.64 Increased By ▲ 1.84 (1.56%)
PRL 25.88 Decreased By ▼ -0.18 (-0.69%)
PTC 13.75 Increased By ▲ 0.03 (0.22%)
SEARL 57.25 No Change ▼ 0.00 (0%)
SNGP 66.40 Decreased By ▼ -0.10 (-0.15%)
SSGC 10.15 Decreased By ▼ -0.09 (-0.88%)
TELE 7.95 Decreased By ▼ -0.26 (-3.17%)
TPLP 10.64 Decreased By ▼ -0.06 (-0.56%)
TRG 61.66 Decreased By ▼ -0.74 (-1.19%)
UNITY 26.63 Decreased By ▼ -0.41 (-1.52%)
WTL 1.36 Increased By ▲ 0.01 (0.74%)
BR100 7,835 Decreased By -10.7 (-0.14%)
BR30 25,330 Increased By 74.3 (0.29%)
KSE100 74,878 Increased By 41.8 (0.06%)
KSE30 23,988 Decreased By -16.5 (-0.07%)
Markets

Copper slips on profit-taking, but holds near 9-year peak

  • Copper inventories are low generally. Normally in China there would have been a build-up before the New Year holiday, but that didn't happen.
  • "The reflation narrative has taken hold and that could be reinforced by a decision in the United States to press ahead with large stimulus."
Published February 17, 2021

LONDON: Copper prices eased on Wednesday as the higher dollar prompted profit-taking, but low inventories and optimism about demand prospects due to stimulus and growth supported sentiment.

Benchmark copper on the London Metal Exchange was down 0.2% at $8,388 a tonne at 1116 GMT. Prices of the metal used widely in the power and construction industries hit a nine-year high at $8,437 a tonne on Tuesday.

"Copper inventories are low generally. Normally in China there would have been a build-up before the New Year holiday, but that didn't happen", said ING analyst Wenyu Yao.

"The reflation narrative has taken hold and that could be reinforced by a decision in the United States to press ahead with large stimulus."

DOLLAR: A higher US currency makes dollar-denominated commodities more expensive for holders of other currencies, which would subdue demand.

INVENTORIES: Stocks of copper in LME registered warehouse, at 76,175 tonnes, are up since last week, but still close to last September's 15-year trough.

Low stocks have fuelled concern about availability on the LME market, creating a premium for cash copper over the three-month contract. The premium rose to a five-month high of $29 a tonne on Monday, and was last around $10 a tonne.

Copper stocks in warehouses monitored by the Shanghai Futures Exchange have fallen 60% since September to below 80,000 tonnes.

"We upgrade our... 6-12 month (forecast) to $10,000 a tonne, based on our updated copper model balances, which point to a deep deficit during 2021 and low inventories for years to come," Citi analysts said in a note.

STIMULUS: US President Joe Biden will travel to Wisconsin on Tuesday to press his case for a $1.9 trillion pandemic relief bill in the political battleground state.

TIN: Prices of the soldering metal touched eight-year highs of $24,875 earlier this week as the market fretted about a deficit. It was last up 0.8% at $24,445 a tonne.

OTHER METALS: Aluminium rose 0.3% to $2,092, zinc added 0.2 to $2,832, lead slipped 0.1% to $2,104 and nickel ceded 0.2% to $18,780 a tonne.

Comments

Comments are closed.