Copper prices were on track for a fourth straight session of declines, pressured by rising inventories and a firm dollar, but trading volumes were tepid as top consumer China is on holiday.
Three-month copper on the London Metal Exchange was down 0.4% to $7,916 per metric ton by 0742 GMT, aluminium declined 0.5% to $2,235.50, while zinc fell 0.4% to $2,482.50.
LME inventories rose to 168,425 tons, leaping 211% since mid-July.
The dollar was flat and hovered near the highest in 11 months, making greenback-priced metals expensive to holders of other currencies.
LME copper has lost 4.4% so far this week, on track for the biggest weekly decline since November 2022, but the contract also rose as much as 0.4% earlier in the session.
“It’s discount hunters but there was not enough volume… so price is still fragile and could break anytime,” said a metals trader.
LME lead rose 0.1% to $2,119.50 a ton and tin rose 0.9% to $24,150.
LME nickel shed 0.5% to $18,625, having lost 38% so far this year, the worst performer across all LME base metals.
“We are revising down our nickel price forecast for 2023 to $22,000 a ton from $23,500 a ton as global nickel production continues to rise, pushing the market into a deeper surplus,” said Fitch Solutions analysis unit BMI said in a report.
Production ramp-up in Indonesia and China will continue into 2024, and nickel prices will likely average $20,600 a ton, lower than this year, BMI analysts said.
The LME cash nickel has been trading at a discount to the three-month contract since June 21, indicating ample nearby supply.
Nickel inventory in LME-registered warehouse was last at 42,174 tons, up 13% since the beginning of September.
Comments
Comments are closed.