Nonferrous metals prices largely fell on Friday and were set for a weekly decline amid mixed economic signals globally and as U.S. rate cuts will be pushed back to later this year.
Three-month copper on the London Metal Exchange fell 0.5% to $8,496.50 per metric ton by 0439 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange dropped 0.9% to 68,780 yuan ($9,580.45) a ton.
On a weekly basis, both contracts were heading for a decline.
U.S. Federal Reserve Chair Jerome Powell ruled out a rate cut at the March meeting as market participants had previously hoped for.
“As interest rates have now been confirmed to remain higher for longer, commodities felt the brunt of this decision,” said Sucden Financial analysts in a note.
Copper retreats on stronger dollar; tighter supply and China data limit losses
Meanwhile, global factories delivered a largely patchy performance at the start of 2024, surveys showed on Thursday, as new orders spurred momentum in the United States, but soft Chinese demand left Asia’s economies on a shaky footing and disruption to Red Sea shipping delayed deliveries in Europe.
“Weaker industrial activity continues to be a drag for metal demand prospects in Q1. Nevertheless, we believe supply side issues should outweigh weaker demand,” said ANZ analysts in a note, referring to the tightness in mined copper supply.
LME zinc on Friday dipped 0.3% to $2,470.50 a ton, lead dropped 0.8% to $2,135, tin declined 0.4% to $25,700, while aluminium rose 0.1% to $2,248.50 and nickel advanced 0.8% to $16,360.
SHFE aluminium declined 0.6% to 18,895 yuan a ton, nickel eased 0.1% to 126,570 yuan, zinc dropped 1.5% to 20,725 yuan, lead edged down 0.2% at 16,155 yuan and tin slumped 1.5% to 214,770 yuan.
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