London copper eased on Thursday as COVID-led demand worries in top metals consumer China and rising inventories outweighed concerns over supply disruptions in key producer Peru.
Benchmark three-month copper on the London Metal Exchange (LME) fell 0.4% to $10,187 a tonne, as of 0710 GMT, erasing gains made during early Asian trade.
The most-active May copper contract on the Shanghai Futures Exchange ended daytime trading mostly unchanged at 74,480 yuan ($11,548.00).
“Rising COVID-19 cases in China and supply disruptions are weakening demand, but increased spending on the electricity grid and China’s downstream demand indicator bode well for copper demand,” commodity strategists at ANZ said in a note.
“Metals inventories are diminishing at the London Metals Exchange, with the exception of copper.”
Copper inventories in LME-approved warehouses rose to their highest since October to 128,775 tonnes, as of April 20. Stocks of copper on the LME system have now climbed 60% over the last four weeks.
Adding to concerns over demand, International Monetary Fund Managing Director Kristalina Georgieva said a prolonged slowdown in China would have substantial global spillovers.
LME copper edges higher as stimulus hopes offset firm dollar, growth woes
The International Monetary Fund on Tuesday cut its China growth forecast for this year to 4.4% on the risks of widespread COVID lockdowns and supply chain disruptions.
Meanwhile, Peru will declare a state of emergency near Southern Copper Corp’s Cuajone mine, the country’s prime minister said on Wednesday, as protests hit top mines in the Andean nation, halting 20% of national copper output.
SANCTIONS: Russian President Vladimir Putin on Wednesday called for structural changes in Russia’s metallurgical industry to counter Western sanctions.
DOLLAR: Making greenback-denominated metals more expensive for buyers using other currencies, the dollar index rose 0.2% towards a two-year peak against its rivals.
OTHER METALS: LME aluminium eased 0.2% to $3,262.50 a tonne, nickel gained 0.4% to $33,650, zinc fell 0.7% to $4,388, lead dipped 0.6% to $2,408, while tin edged 0.5% lower to $42,750.
Shanghai aluminium eased 0.1%, nickel dipped 1.3%, lead rose 1.2%, while tin slipped 1.2%.
Comments
Comments are closed for this article.