LONDON: Copper slipped on Tuesday as the onset of a week-long holiday in top metals consumer China coincided with the end of the third quarter, prompting profit-taking after prices hit their 15-month high last week.
Benchmark three-month copper on the London Metal Exchange fell 0.6 percent to USD10,347.50 a metric ton by 0948 GMT. The metal, used in power and construction, is on track to close the third quarter with 5percent growth as many analysts lowered their 2025 and 2026 market supply estimates after this month’s disruption at the Grasberg mine in Indonesia.
The prospect of lower supply from Grasberg saw the copper price hitting a 15-month high of USD10,485 on Thursday and reduced the discount of the LME cash prices against the three-month copper contract.
The discount was last at USD26 a ton, lowest level since July, compared to USD73 a week ago. In China, the Yangshan copper premium, which reflects demand for copper imported into the country, fell 6percent to USD50 a ton, its six-week low, ahead of the National Day holidays, which usually reduce overall trading activity.
Mainland China’s financial markets will be closed from October 1 to October 8. Further affecting the market sentiment was China’s weak manufacturing data. Its manufacturing activity shrank for a sixth month in September, an official survey showed on Tuesday, suggesting producers are waiting for further stimulus to boost domestic demand. Among other LME metals, tin lost 0.5percent to USD35,285 a ton.
The metal hit USD35,510, its highest since April 4, on Monday after a report that Indonesia ordered the closure of around 1,000 illegal tin mines in a key producing region.
The significance of the move for the tin supply from the region is probably exaggerated, said a tin trader. “The actual impact on the tin supply is still uncertain, but this uncertainty fuels funds’ involvement into long positions on the LME tin,” he added.
LME aluminium and zinc fell 0.2 percent to USD2,674.50 and to USD2,935.50, respectively, while lead was steady at USD1,995.50 and nickel lost 0.4 percent to USD15,270.
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