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

LME copper eyes biggest weekly drop in 15 mths on China sale plan, dollar

06/18/2021 | 02:13am EDT

HANOI, June 18 (Reuters) - London copper prices were set on Friday for their biggest weekly fall since March 2020 as the dollar firmed on the prospect of U.S. interest rate hikes and after China announced a plan to sell part of its reserves of the metal.

Three-month copper on the London Metal Exchange was down 0.8% at $9,242.50 a tonne by 0710 GMT, pushing its loss for the week to 7.6% and putting it on track for its steepest weekly fall since March last year, when the coronavirus hit demand.

The most traded July copper contract on the Shanghai Futures Exchange dropped to 66,960 yuan ($10,394) a tonne, its lowest since April 15, before paring some losses to close at 67,260 yuan a tonne, still down 2.6%.

The dollar was headed for its biggest weekly gain in nearly nine months as investors scrambled to price in a sooner-than-expected ending to extraordinary U.S. monetary stimulus in the days after a surprise shift in tone from the Federal Reserve.

A stronger dollar makes greenback-priced metals more expensive and less appealing to holders of other currencies.

"Metals were suffering from equity markets that started to fall, and tapering and potential rises in interest rates unnerving investors," said Malcolm Freeman, a director at UK broker Kingdom Futures.

"It felt like the investment community was reducing its exposure."

Prices had already been under pressure after top metals consumer China announced a plan on Wednesday to sell state reserves of copper, aluminium and zinc in an effort to curb a strong price rally in commodities.

FUNDAMENTALS

* LME aluminium fell 0.3% to $2,392 a tonne, nickel rose 1% to $17,345 a tonne, ShFE aluminium dropped 1.8% to 18,380 yuan a tonne and zinc shed 3.1% to 21,935 yuan a tonne.

* The speculative net long in SHFE copper declined to 9.5% of open interest on Thursday, the lowest since Nov 24 last year and down from a mid-May high of 54.7%, Marex Analytics data showed.

* A single party controls 50%-80% of available zinc stocks and short-term futures, LME data showed. <0#LME-WHT>

* For the top stories in metals and other news, click or

($1 = 6.4419 yuan) (Reporting by Mai Nguyen; Editing by Subhranshu Sahu, Aditya Soni and Jan Harvey)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BRITISH POUND / US DOLLAR (GBP/USD) 0.04% 1.39014 Delayed Quote.1.70%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) 0.07% 0.8024 Delayed Quote.2.11%
EURO / US DOLLAR (EUR/USD) 0.15% 1.1884 Delayed Quote.-2.84%
INDIAN RUPEE / US DOLLAR (INR/USD) 0.00% 0.013452 Delayed Quote.-1.75%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) 0.11% 0.69809 Delayed Quote.-2.86%
S&P GSCI ALUMINUM INDEX 1.31% 167.1541 Delayed Quote.31.39%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) -0.01% 6.46364 Delayed Quote.-0.47%
Latest news "Economy & Forex"
09:00aGold slips on improving risk appetite, U.S. jobs data in focus
RE
09:00aBrazil manufacturing PMI rises to 5-month high in July, IHS Markit says
RE
08:51aSquare inc exec says expects 20% y-o-y growth in gross profit for july
RE
08:47aStimulus hopes set to lift S&P 500 to near record highs
RE
08:42aCHINA'S COPPER APPETITE WANES JUST AS US GROWS HUNGRY : Andy Home
RE
08:11aIvory Coast's cocoa mid-crop needs more rain for strong finish
RE
07:57aWall Street set to open higher; oil hit by China demand concerns
RE
07:56aDollar resumes downtrend after worst week since May
RE
07:48aOil prices hit by concern over Chinese economy and higher supply
RE
07:45aWall Street set to open higher; oil hit by China demand concerns
RE
Latest news "Economy & Forex"