BEIJING: Copper prices climbed on Thursday with support from tightening inventory even as gains remained limited on global recession fears. Three-month copper on the London Metal Exchange was up 0.5% to $8,828 a tonne by 0420 GMT, extending gains from the previous session as on warrant copper stocks on the exchange fell to the lowest since 2021.
“Despite support from low inventories, copper prices are more likely to fall given the looming recession concerns,” said Zhang Weixin, an analyst at China Futures.
A recent increase in China’s copper imports also weighed down prices, Zhang added.
Meanwhile, a court has ruled that Ecuador failed to give local communities in a highly biodiverse province their right to an environmental consultation on a joint copper mining venture by state-run ENAMI and a subsidiary of Chile’s Codelco, lawyers for the communities said on Wednesday, and the project must be suspended. Most other metals in London rebounded.
LME zinc recovered 0.6% to $2,805 from a five-month low, aluminium advanced 0.9% at $2,355, tin added 0.3% to $24,320, lead was up 0.3% to $2,116, while nickel eased 0.6% to $22,570.
The dollar gained slightly on Thursday, as traders weighed how pivotal US jobs data coming out during a holiday weekend will impact Federal Reserve policy.
Copper prices down with global growth concerns
A stronger dollar often makes it less attractive for non-dollar holders to buy the greenback-priced commodity.
The most-traded May copper contract on the Shanghai Futures Exchange slipped 0.7% to 68,680 yuan a tonne.
SHFE aluminium eased 0.6% to 18,600 yuan, zinc fell 2.2% to 22,040 yuan, tin lost 4.4% to 196,020 yuan, and nickel shed 3% to 173,050 yuan, while lead added 0.1% to 15,230 yuan.
SHFE will lower margin requirements and trading limits for base metals after the closing of trading on Thursday.
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