Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Copper falls as market frets about demand, China curbs

06/14/2021 | 06:00am EDT

LONDON, June 14 (Reuters) - Copper slipped on Monday as fears that top consumer China would take action to curb any further rises in prices of industrial metals and the notion of fundamentals overtaking prices sparked some selling.

Benchmark copper on the London Metal Exchange traded down 0.2% at $9,980 a tonne at 1601.

Prices of the metal, often used as a gauge of manufacturing activity, are down nearly 8% since hitting a record high of $10,747.50 a tonne in May. Over the last week they have mostly traded between $9,800 and $10,000 a tonne.

"The "grand" opening of economies because of vaccinations and the reflation story was priced in very quickly. The market is now taking a more sober view of fundamentals," said Julius Baer analyst Carsten Menke.

"At the same time we have Chinese authorities saying they will crack down on speculation in commodity markets."

CHINA: Clues to Chinese demand for base metals will come this week with industrial production data for May. The consensus is for an activity slowdown.

RESERVES: China plans to release state reserves of non-ferrous metals copper, aluminium and zinc in a programme set to last until the end of 2021, data provider Shanghai Metal Exchange Market and Chinese analysts said.

"Sales of aluminium and zinc are dramatically more likely than copper since China is short copper and the refined copper market is not tight at present," Citi analysts said.

China's state planner last week renewed its pledge to step up monitoring of commodity prices, as domestic producer inflation hit its highest in more than 12 years.

INVENTORIES: Stocks of copper in LME registered warehouses <MCUSTX-TOTAL> at 138,300 tonnes, up 24% since May 12 have eased worries about supplies on the LME market.

This is seen in the $28 a tonne discount for the cash over the three-month contract <CMCU0-3> compared with a $20 a tonne premium on April 26.

OTHER METALS: Aluminium was up 1.3% at $2,497 a tonne, zinc rose 0.4% to $3,060, lead gained 0.1% to $2,201, tin added 0.4% to $31,700 and nickel climbed 1.3% to $18,465.

(Reporting by Pratima Desai; editing Emelia Sithole-Matarise and David Evans)

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
S&P GSCI ALUMINUM INDEX 0.87% 159.0539 Delayed Quote.26.66%
S&P GSCI INDUSTRIAL METALS INDEX 0.57% 465.4628 Delayed Quote.21.88%
Latest news "Economy & Forex"
02:41pU.S. CDC Reports Total Novel Coronavirus Cases Of 34,380,019 As Of July 23
02:41pU.s. cdc reports total deaths of 608,403 due to coronavirus as of yesterday vs 608,113 in previous report on july 23
02:40pU.s. cdc reports total novel coronavirus cases of 34,380,019 as of yesterday vs 34,312,832 in previous report on july 23
02:39pU.s. cdc says 162,435,276 individuals have been fully vaccinated against covid-19 as of july 24 vs 162,435,276 individuals as of july 23
02:38pU.s. cdc says 187,579,557 individuals have received at least one dose of covid-19 vaccine as of july 24 vs 187,579,557 individuals as of july 23
02:36pU.s. cdc says administered 340,363,922 doses of covid-19 vaccine as of july 24 vs 340,363,922 doses administered as of july 23
02:35pU.s. cdc says delivered 393,929,955 doses of covid-19 vaccine as of july 24 vs 393,929,955 doses delivered as of july 23
11:58aAfter six worker deaths at Georgia chicken plant, U.S. issues $1 million in fines
11:48aU.S. to stress need for 'guardrails' in Sherman's talks in China
11:08aMINISTRY OF FINANCE OF REPUBLIC OF INDIA : Income Tax Department conducts searches in Uttar Pradesh
Latest news "Economy & Forex"