Copper prices fell on Tuesday, pressured by a firmer dollar and uncertainty about top consumer China’s economic recovery following weak data and a lack of details on the country’s stimulus plans.
Three-month copper on the London Metal Exchange (LME) slipped 1.2% to $9,547 per metric ton by 0722 GMT, hitting the lowest level in three weeks. The most-traded November copper contract on the Shanghai Futures Exchange (SHFE) fell 1.3% to 76,520 yuan ($10,747.34) a ton.
The dollar was perched near its highest in more than two months, making greenback-priced commodities more expensive to other currency holders.
Latest data out of China, including the September trade and new lending figures, has missed expectations, while another report showed producer price deflation deepened.
China pledged on Saturday to “significantly increase” debt, but provided no specific information on the size or the timing of the package.
“Investors are going to see how Chinese policymakers navigate their economic play book. If we get a clear figure on the size of the stimulus and not just re-iterations, then copper prices could rise,” said Kelvin Wong, OANDA’s senior market analyst for Asia Pacific.
Focus is now on the Standing Committee of the National People’s Congress meeting due later this month. Local media reported that Beijing may raise an additional $850 billion from Treasury bonds over three years.
Freeport Indonesia has halted copper cathode production activities at its Manyar smelter after a fire, the company’s chief executive said.
Copper prices hit by scant details on China stimulus
SHFE aluminium was down 1.3% at 20,605 yuan a ton, nickel fell 1.9% to 132,680 yuan, zinc shed 2.1% to 24,955 yuan, lead declined 1.6% to 16,505 yuan and tin fell 1.5% to 264,110 yuan.
LME aluminium eased 1.4% to $2,557 a ton, nickel lost 1.4% to $17,415, zinc dropped 2.1% to $3,018.5, lead decreased 1% to $2,043.5 and tin eased 1% to $32,125.
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