BEIJING: London copper steadied on Friday as investors worries around a global recession and demand uncertainty in top consumer China dragged prices.
Three-month copper on the London Metal Exchange was unchanged at $8,312 a tonne by 0404 GMT, compared with $8,266.50 a tonne, its closing price of the previous week.
While a series of policy measures and hopes of better industrial activities due to easing in China’s COVID policies supported prices, a huge spike in infections in the country have equally weighed on the metals market.
On Friday, the country’s central bank made its biggest weekly liquidity injection into the banking system in nearly two months to counteract the year-end rush for cash.
Against that backdrop, however, the country continues to suffer from the COVID-19 situation as it scrambles with widespreading infections that have resulted in slower logistics and lower operation rates in some producing regions.
Meanwhile, stronger-than-expected U.S. job and GDP data on Thursday pointed to labour market strength that could keep the Federal Reserve hawkish for longer, sending the dollar higher.
Copper edges lower as Chinese COVID cases multiply
The market’s focus is also on U.S. economic data due later in the for more clues on interest rate rises by the Fed.
The most-traded January copper contract on the Shanghai Futures Exchange slid 0.8% to 65,450 yuan ($9,363.11) a tonne.
“Despite the optimism from policy support, spot trading remains light amid soft demand,” a Chinese copper trader said.
The Yangshan premium, which reflects demand for imported copper into China, fell 73.8% from a multi-year high of $152.50 a tonne hit in October to $40 a tonne on Dec.22.
CITIC Futures forecast a market surplus of 420,000 tonnes next year, reversing from a tight market this year.
Meanwhile, a major fire broke out at Chile’s Ventanas port near a refinery and smelter belonging to state-run miner Coldeco, but the company said on Thursday that operations have not been affected by the blaze.
Among other metals, LME aluminium slipped 0.2% to $2,402.50 a tonne, zinc was down 0.4% to $2,936.50, lead climbed 0.5% to $2,227.50, while tin edged 0.1% up to $23,945.
UK-based Global Commodities Holdings (GCH) said on Thursday it would launch a spot trading platform for physically delivered nickel in the first quarter of 2023.
SHFE aluminium eased 0.2% at 18,650 yuan a tonne, zinc lost 1.3% to 23,150 yuan and nickel retreated by 0.9% to 217,600 yuan, while tin was up 0.3% at 196,610 yuan.
Comments
Comments are closed.