LONDON: Copper prices eased on Friday and were on track to end the week lower after stimulus measures from top consumer China failed to ease demand worries.
Three-month copper on the London Metal Exchange (LME) edged down 0.1% to $9,502.50 per metric ton by 0808 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) closed down 0.2% at 76,390 yuan ($10,723.51) a ton. LME copper was on track for its fourth straight week of decline. SHFE copper posted its third straight weekly fall.
China has announced a slew of supportive measures to boost its economic growth, but the scale of support has so far failed to allay demand worries. LME aluminium dropped 1.2% to $2,618 a ton, retreating from a near five-month high hit in the previous session on raw material supply worries.
LME zinc shed 3.4% to $3,066, easing from a 20-month high scaled on Thursday amid tightness in near-term supplies. “It is not the first time those metals have got carried away with supply disruption or ore shortage stories by ignoring demand slowdown. But in most such times, prices have started multi-month bearish trend,” said Sandeep Daga, a director at Metal Intelligence Centre.
“Bulls are refraining from adding new bets despite Chinese stimulus, while bearish stakes are at multi-year low. A large part of panic buying from bears is over. I expect prices to slide,” Daga said, adding that LME copper could fall to $9,200 a ton.
LME nickel eased 0.7% to $16,185, lead edged down 0.9% to $2,055.50 and tin fell 0.6% to $30,960. SHFE aluminium fell 1.4% to 20,760 yuan a ton, zinc declined 0.8% to 25,135 yuan, tin decreased 0.2% to 254,290 yuan, lead edged down 0.3% to 16,710 yuan and nickel was down 0.1% at 125,870 yuan.
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