Copper prices hit their lowest in more than three months on Friday, with London copper set for the biggest weekly fall since November 2022 due to the lack of Chinese stimulus measures.
Three-month copper on the London Metal Exchange (LME) rose 0.2% to $9,408.50 a metric ton at 0423 GMT, paring losses after falling as much as 0.6% to $9,328.50 earlier in the session, its lowest since April 11.
The most-traded August copper contract on the Shanghai Futures Exchange (SHFE) fell 1.7% to 76,820 yuan ($10,571.95) a ton at the midday break. Earlier in the session, it lost as much as 2.4% to 76,300 yuan, the lowest since April 11.
For the week, LME copper was down 4.7%, on track for its biggest weekly fall since November 2022. SHFE copper was down 3% week-on-week.
China’s key political meeting this week did not provide any details on further stimulus measures despite the economy struggling to maintain a strong growth momentum, weighing down on demand prospects in the world’s biggest consumer of metals.
“Market is crediting the fall to the third plenum lacking stimulus, but … hopes were not high to begin with.
It’s just a tempering of expectations,“ said a trader, referring to the meeting of the Chinese Communist Party’s Central Committee. Other metals also hit multi-month lows.
LME aluminium hit the lowest since April 3 of $2,367.50 a ton, and SHFE aluminium fell as much as 0.9% to 19,535 yuan, the lowest since March 28.
Copper falls on lack of impetus from China
LME nickel hit $16,385, a four-month low. Both nickel and aluminium were weighed down by rising output in their major producing countries.
LME lead eased 0.3% to $2,151, tin declined 0.3% to $31,520 and zinc edged down 0.1% at $2,807.
SHFE nickel edged up 0.2% to 131,060 yuan, zinc fell 0.7% to 23,505 yuan a ton, lead shed 0.4% to 19,840 yuan and tin dropped 2.7% to 261,840 yuan.
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