LONDON: Copper led base metals lower on Monday as investors took profits after the metal used in power and construction touched a two-week high on Friday.
Three-month copper on the London Metal Exchange ended down 1.5 percent at $6,191.50 a tonne, having climbed on Friday to its highest since Oct. 22 at $6,315.
“There are probably some market players taking profits off the table,” said Natixis analyst Bernard Dahdah.
Copper soared on Friday on signs that trade tensions were easing after optimistic comments from the United States and China.
Chinese President Xi Jinping on Monday added to that positivity by promising to lower tariffs, broaden market access and import more from overseas, but his comments failed to impress the market.
“(President Xi’s) reiteration of plans to further cut taxes, import $30 trillion of goods over the next 15 years, coupled with a distinct lack of details around any further stimulus measures, leaves the market disappointed,” Marex Spectron analyst Alastair Munro said in a note.
DEAL HOPES: US President Donald Trump said on Monday that China has hurt the United States economically but was ready to make a deal on trade and he si open to a fair agreement.
CHINA SERVICES: China’s services sector chalked up its slowest growth in more than a year last month as new orders dried up, a private survey showed, suggesting a further loss in economic momentum as 2018 draws to a close.
RUSAL: Russian aluminium giant Rusal has appointed a chief executive, it said on Monday, after reporting third-quarter recurring net profit up 42 percent from the previous quarter as sanctions imposed by Washington were postponed.
STOCKS: On-warrant copper stocks available to the market in LME-approved warehouses edged down to 100,525 tonnes after jumping 78 percent, or 44,950 tonnes, on Friday.
SPREADS: In copper, concern about nearby shortages on the LME market have created a premium of $31 a tonne for cash over three-month contracts. This compares with a discount of $47 at the end of October.
“There were stocks delivered last week that some people didn’t expect players buy and borrow in fairly thin conditions,” one trader said.
PRICES: Aluminium ended 0.1 percent up at $1,975 a tonne, zinc eased 0.7 percent to $2,521, lead fell 2.8 percent to $1,935, tin ended down 0.1 percent at $19,075 and nickel fell 1.5 percent to $11,750.
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