LONDON: Copper prices fell in London on Friday and were set for the biggest weekly decline in five weeks as a recent price rally hurt physical demand while inventories in top consumer China rose.
Three-month copper on the London Metal Exchange (LME) fell 0.3% to $9,696 per metric ton, as of 0725 GMT. The contract was down 2.3% for the week so far, set for its biggest weekly drop since Sept. 2. The most-traded November copper contract on the Shanghai Futures Exchange (SHFE) closed up 0.3% at 77,220 yuan ($10,918.19) a ton, tracking gains in London in the previous session. SHFE copper inventories on Friday climbed 10.5% from Sept. 30 to 156,485 tons.
“Copper demand has weakened due to surging prices over the last few days. Prices are not stable yet, and this price level is still higher than before the US cut interest rates.
Buyers are adopting a wait-and-see approach,” said CRU analyst He Tianyu. Metal prices were further weighed down this week after China’s stimulus announcements on Tuesday failed market expectations and lacked detail. Focus is now on further details on Chinese stimulus, scheduled for Saturday.
However, cushioning the fall in base metals on Friday was the US dollar falling from two-month highs, making greenback-priced metals cheaper to holders of other currencies. LME aluminium increased 1.1% to $2,615.50 a ton, nickel edged up 0.6% to $17,645, zinc increased 0.2% to $3,094.50, lead rose 0.6% to $2,079 and tin climbed 0.6% to $33,020.
SHFE aluminium increased 1.6% to 20,825 yuan a ton, nickel jumped 1.6% to 134,450 yuan, zinc climbed 2.1% to 25,350 yuan, lead edged up 0.9% at 16,725 yuan and tin jumped 1.3% to 267,670 yuan.
Source: Brecorder
