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) 0.31% 1.39317 Delayed Quote.1.78%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) 0.48% 0.80053 Delayed Quote.1.60%
EURO / US DOLLAR (EUR/USD) 0.05% 1.18438 Delayed Quote.-2.82%
INDIAN RUPEE / US DOLLAR (INR/USD) 0.08% 0.013494 Delayed Quote.-1.64%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) 0.32% 0.7061 Delayed Quote.-1.89%
S&P GSCI ALUMINUM INDEX 0.45% 164.6267 Delayed Quote.29.89%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) -0.09% 6.4556 Delayed Quote.-0.52%
Latest news "Economy & Forex"
11:43aThomson Reuters lifts 2021 sales outlook as earnings beat forecasts
RE
11:40aFed's Waller says accommodative policy may be pulled back sooner than expected
RE
11:39aOutdoor grills maker Weber valued at nearly $5 billion in debut as shares rise
RE
11:18aSempra reports second quarter earnings that beat estimates
RE
11:11aFed taper bets knock gold in run-up to U.S. jobs data
RE
11:06aViacomCBS adds millions of new subscribers, to launch Paramount+ in Europe
RE
11:01aFed lifts restrictions on JPMorgan imposed after forex manipulation
RE
10:58aEthereum software upgrade activated; ether reverses losses, trades up
RE
10:45aCheniere sees Louisiana Sabine 6 LNG unit on in H1 2022
RE
10:44aCanada's TMX shares surge to one-year high on better-than-expected profit
RE
Latest news "Economy & Forex"