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Markets

LME copper snaps 3-day rally ahead of key data from US, China

Published Updated
Photo: Reuters
Photo: Reuters
By

London copper fell on Tuesday as traders booked profits after a three-session rally, but trading volume was thin amid caution ahead of key data from the United States and China.

Three-month copper on the London Metal Exchange (LME) fell 0.8% to $8,959 per metric ton by 0436 GMT.

The contract rose 2.9% combined in the previous three sessions.

High inventories and weaknesses in global economies have been weighing on metals prices in the past two weeks.

"(Copper) is overbought based on technical indicators, and it's fair (for price) to come down and for short-term traders to take profit," said a trader.

China is due to release its urban investment and loans data this week, and the US will report its consumer prices figures on Wednesday, which will give clues to the timing of a rate cut by the Federal Reserve.

The most-traded September copper contract on the Shanghai Futures Exchange (SHFE) rose 0.9% to 72,330 yuan ($10,074.80) a ton, tracking overnight gains in London.

Copper prices in recent sessions were helped by better demand in top consumer China as prices have fallen to below $9,000 a ton and shed around 20% from a record high hit in May.

Copper rallies ahead of Chinese and US data

A copper fabricator in China said improving purchase from the country's State Grid also boosted copper consumption.

Supply disruption in China also lent support, with Jiangxi Copper's subsidiary suspending its plant in Shandong province - which produced 203,023 tons of copper last year - after a fatal copper furnace accident.

LME aluminium eased 0.5% to $2,294.50 a ton, nickel dropped 0.7% to $16,235, zinc decreased 0.7% to $2,725, lead was down 1.2% at $2,023.50, tin dropped 0.4% to $31,435.

SHFE aluminium fell 0.6% to 19,030 yuan a ton, nickel eased 0.5% to 128,380 yuan, tin edged down 0.5% at 255,810 yuan, lead fell 1% to 17,790 yuan while zinc rose 0.6% to 23,045 yuan and .

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