AGL 5.60 Decreased By ▼ -0.18 (-3.11%)
ANL 8.90 Increased By ▲ 0.02 (0.23%)
AVN 76.85 Decreased By ▼ -2.07 (-2.62%)
BOP 5.26 Decreased By ▼ -0.02 (-0.38%)
CNERGY 4.63 Decreased By ▼ -0.07 (-1.49%)
EFERT 81.27 Decreased By ▼ -0.33 (-0.4%)
EPCL 50.08 Decreased By ▼ -0.83 (-1.63%)
FCCL 13.16 Decreased By ▼ -0.22 (-1.64%)
FFL 5.69 Decreased By ▼ -0.03 (-0.52%)
FLYNG 7.07 Decreased By ▼ -0.08 (-1.12%)
FNEL 4.79 Decreased By ▼ -0.03 (-0.62%)
GGGL 8.80 Decreased By ▼ -0.10 (-1.12%)
GGL 14.55 Decreased By ▼ -1.33 (-8.38%)
HUMNL 5.69 Decreased By ▼ -0.08 (-1.39%)
KEL 2.63 Decreased By ▼ -0.03 (-1.13%)
LOTCHEM 28.60 Decreased By ▼ -0.45 (-1.55%)
MLCF 24.49 Decreased By ▼ -0.61 (-2.43%)
OGDC 72.43 Decreased By ▼ -0.02 (-0.03%)
PAEL 15.36 Increased By ▲ 0.01 (0.07%)
PIBTL 5.00 Decreased By ▼ -0.05 (-0.99%)
PRL 16.10 Decreased By ▼ -0.19 (-1.17%)
SILK 1.08 Decreased By ▼ -0.01 (-0.92%)
TELE 9.14 Decreased By ▼ -0.23 (-2.45%)
TPL 7.23 Decreased By ▼ -0.10 (-1.36%)
TPLP 18.61 Decreased By ▼ -0.34 (-1.79%)
TREET 21.68 Decreased By ▼ -0.32 (-1.45%)
TRG 136.71 Decreased By ▼ -4.44 (-3.15%)
UNITY 16.88 Decreased By ▼ -0.14 (-0.82%)
WAVES 9.86 Decreased By ▼ -0.04 (-0.4%)
WTL 1.41 No Change ▼ 0.00 (0%)
BR100 4,225 Decreased By -29.6 (-0.7%)
BR30 15,518 Decreased By -214.7 (-1.36%)
KSE100 42,150 Decreased By -243.4 (-0.57%)
KSE30 15,588 Decreased By -75.7 (-0.48%)
Follow us

LONDON: Copper prices rose on Tuesday as a softer dollar triggered fund buying, though gains were capped by rising inventories and a worsening demand outlook, particularly in top consumer China.

Benchmark copper on the London Metal Exchange (LME) was up 0.7% at $7,563 a tonne by 1010 GMT in subdued trade owing to Chinese holidays. Prices of the metal viewed as a gauge of economic growth have dropped 30% since scaling a record peak in March.

The dollar slipped after data showing that U.S. manufacturing expanded at its slowest since May 2020 raised the prospect of less aggressive increases to U.S. interest rates.

A weaker U.S. currency makes dollar-priced metals cheaper for holders of other currencies, potentially boosting demand. This relationship is used by funds to generate buy and sell signals from numerical models.

Overall, though, the dollar is near its strongest in 20 years, which will weigh on demand together with weak consumption as economies slow, driving down copper prices.

“A strong dollar is a clear headwind,” said BNP Paribas analyst David Wilson.

Copper pressured by crumbling demand

“Demand in China is a particular headwind, due mainly to the property sector. Chinese authorities have introduced measures to stem the decline in the property sector without much affect.”

China’s property market troubles worsened in August, with home prices, sales and investment all falling as a mortgage boycott and financial strains on builders further undermined confidence in the sector.

Stocks of copper stocks in LME-approved warehouses are up nearly 35% since Sept. 15 at 136,750 tonnes. That is still low by historical standards, but traders expect further deliveries because of the high premium for cash metal over the three-month contract.

Copper breached but failed to hold above the 21-day moving average of $7,650. A sustained break above that will leave copper facing strong resistance at the 50-day moving average, currently sitting at $7,795.

In other metals, aluminium was up 2.5% at $2,276 a tonne, zinc rose 0.7% to $2,980, lead gained 0.8% to $1,876, tin advanced 1.1% to $20,290 and nickel was up 0.7% at $21,415.

Comments

Comments are closed.

Softer dollar lifts copper, but demand outlook weighs

PTI to quit Punjab, KP assemblies this month: Imran Khan

3 police personnel gunned down in Nowshera

US condemns attack on Pakistani embassy in Kabul, calls for probe

Dutch masters into World Cup quarter-finals as USA downed

OPEC+ will keep oil policy unchanged in review talks: sources

PTI quitting provincial assemblies will be humiliating for its voters: Saad Rafiq

Russia: price cap is ‘dangerous’ and will not curb demand for our oil

Pakistan calls on interim Afghan govt to up security at Kabul embassy after attack

Moonis’ claims on Gen Bajwa raises doubts on institution’s apolitical narrative: Sanaullah

US unveils high-tech B-21 stealth bomber