LONDON: Copper prices hit a three-week low on Thursday and other base metals also eased as uncertainty persists over economic conditions and demand growth.
Benchmark copper on the London Metal Exchange (LME) was down 0.6% at $9,477 a metric ton by 1400 GMT. Earlier in the session, prices touched their lowest since May 1 at $9,223.20.
“A real state of paralysis has swept through metals markets,” said Alastair Munro at broker Marex, pointing to the expiry of LME benchmark contracts this week.
Prices have been pressured by a sharp rise in Chinese copper inventories last week, ending a three-week run of large withdrawals. Analysts and traders said that the rise was due to tepid copper demand in China and steady output from a growing smelting sector.
Also weighing on the market was the prospect of more supply after Freeport Indonesia’s Manyar smelter in East Java resumed operations ahead of schedule after a fire last year.
Further dampening the market was a firmer US dollar after data showed US business activity picked up in May, making dollar-priced metals more expensive for buyers with other currencies.
LME lead was down 1% at $1,955 a ton after touching its lowest since May 9 at $1,947.50. On-warrant LME lead inventories have surged by 91% over the past two days to 234,000 tons, their highest since December 2024.
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