LONDON: Copper prices fell on Tuesday as strong trade data from China, the largest consumer, was offset by a stronger dollar and news that Johnson & Johnson had paused clinical trials of a coronavirus vaccine. Benchmark three-month copper on the London Metal Exchange (LME) was down 0.7% at $6,689 a tonne at 1605 GMT, but remained close to September's 27-month high of $6,877.50.
Used in power and construction, copper has gained more than 50% since March as China reopened its industry. US stimulus, a weaker dollar or faster growth outside China could lift prices further, but a resurgence in coronavirus cases could lower them, said Saxo Bank analyst Ole Hansen.
"Probably we have reached as far as we can," he said. Chinese exports rose 9.9% in September from a year earlier, in line with analysts' expectations and up from a 9.5% increase in August. Imports jumped 13.2% compared to a 2.1% drop in August.
China's copper imports rose in September to their second highest level on record. Imports in the first nine months of 2020 were up 41% from a year earlier at 4.99 million tonnes.
"China's plan to build strategic reserves is likely to keep imports resilient," analysts at ANZ wrote in a note.
Johnson & Johnson paused clinical trials of a coronavirus vaccine candidate due to an unexplained illness in a study participant. The dollar rose, making metals pricier for non-US buyers. China's yuan has weakened from an 18-month high hit on Friday, but international banks say it is likely to strengthen again.
Japan's manufacturers are recovering at a glacial pace. Democratic Republic of Congo has issued a six-month waiver to an export ban on copper concentrate, the mining minister said. China's output of zinc rose in September, while nickel, lead and tin production fell, research house Antaike said.
The European Union will impose duties of up to 48% on imports of aluminium extrusions from China. LME aluminium was down 0.1% at $1,853.50 a tonne, zinc fell 0.9% to $2,417, nickel slipped 0.9% to $15,030, lead lost 2.4% to $1,800.50 and tin was 0.1% lower at $18,230.
Comments
Comments are closed.