BEIJING: Copper prices drifted lower on Wednesday as a double-digit decline in China’s industrial profit in the first five months weighed on sentiment, though losses were limited by tight global inventories and demand hopes.
Three-month copper on the London Metal Exchange dipped 0.3% to $8,338.50 per metric ton by 0411 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange was down 0.6% at 68,020 yuan ($9,412.19) per ton.
Profits at China’s industrial firms shrank by 18.8% year-on-year in the first five months of 2023, official data showed, as companies wrestled with margin squeezes from softening demand amid a stumbling post-COVID economic recovery.
But stocks of the metal dropped recently, despite the tepid demand in a traditional weak demand season, said analysts at Guangda Futures, anticipating a likely price rebound.
Global exchange copper stocks sank to 15-year lows, stoking concerns about supply especially if demand in top buyer China starts to pick up following the rollout of further stimulus.
Chinese Premier Li Qiang said on Tuesday the country will take steps to boost demand and accelerate green transition.
Copper slips on economic worries despite upbeat China comments
Chilean state-run miner Codelco, the world’s largest copper producer, is still evaluating the hit to operations from weather-related stoppages in the country’s central-south region, the company told Reuters on Tuesday.
The disruption has yet had any impact on Chinese spot prices, with copper concentrate treatment charges staying at a more than four year high at $89.50 a ton since mid-June.
LME aluminium eased 0.6% to $2,181 a metric ton, tin slid 0.6% to $26,125, zinc shed 1% to $2,362, lead slipped 0.4% to $2,088.50, and nickel declined 0.9% to $20,600.
SHFE aluminium climbed 0.5% to 18,265 yuan a metric ton, zinc moved down 0.4% to 20,035 yuan, tin rose 1.3% to 213,760 yuan, while lead shed 0.3% to 15,455 yuan, and nickel dipped 0.3% to 161,040 yuan.
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