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Saturday, June 3, 2023

Copper set for 6th weekly drop on demand worries

BEIJING: Copper prices climbed on Friday on improved sentiment, while heading for a sixth weekly loss with lingering macro economic concerns, which also darkened metals demand outlook against rising supplies.

Three-month copper on the London Metal Exchange was up 0.8% at $8,025.50 a tonne, as of 0415 GMT, but down 2.7% so far in the week. Friday’s gains came after the progress made in the US ceiling negotiations, noted analysts at Dongwu Futures.

US President Joe Biden and top congressional Republican Kevin McCarthy appeared to be closing in on a deal that would raise the government’s $31.4 trillion debt ceiling for two years while capping spending on most items.

Jitters over the debt negotiation and signs of a global economic slowdown sent copper prices below $8,000 a tonne earlier this week for the first time since November.

Expectations that US interest rates could remain higher for longer than initially expected also supported the dollar.

The greenback stood near a two-month high against its major peers on Friday and was headed for a third weekly gain, making it less attractive for non-dollar holders to buy the dollar-priced commodity.

Market fundamentals also deteriorated by the rising production at copper mines and persistently tepid demand, according to analysts at Antaike.

Participants in China expect to see arrivals of copper shipped from Democratic Republic of Congo in June, after China’s CMOC reached an agreement with the local government and resumed its exports.

Subdued demand pushes copper to multi-month low

The most-traded July copper contract on the Shanghai Futures Exchange added 0.6% at 63,650 yuan a tonne. LME aluminium held steady at $2,230 a tonne, tin fell 0.8% to $24,420, lead slipped 0.2% to $2,070, while nickel added 0.3% to $21,300, zinc climbed 1.4% to $2,303.50.

SHFE aluminium rose 1.8% to 17,900 yuan a tonne, lead ticked 0.1% up at 15,260 yuan, nickel was up 1% at 167,720 yuan, tin was up 1.1% to 199,150 yuan, and zinc added 0.5% at 19,250 yuan.

Source: Brecorder

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