AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)
Markets

Copper slides as demand concerns resurface

  • There has been an astounding deterioration in the coronavirus situation pretty much around the world, with the Far East being a notable exception.
  • "If Trump wins, metals could sell off because things will stay tense with China."
Published October 29, 2020

LONDON: Copper prices fell on Thursday as worries about growth and demand were reinforced by the second wave of COVID-19 and lockdowns in Europe and as the market awaited the result of next week's US presidential election.

Benchmark copper on the London Metal Exchange was down 0.2% at $6,731 a tonne at 1003 GMT. Prices of the metal used widely in the power and construction industries are down nearly 5% since hitting 28-month highs last week.

"There has been an astounding deterioration in the coronavirus situation pretty much around the world, with the Far East being a notable exception," said ED&F Man Capital Markets' analyst Edward Meir.

Opinion polls on the US election show President Donald Trump's rival Joe Biden with a significant edge nationally, but his lead is tighter in battleground states.

"If Trump wins, metals could sell off because things will stay tense with China," Meir said. "Industrial metals will rally if Biden wins, he will be more conciliatory on all fronts. The dollar could weaken."

DOLLAR: A falling US currency makes dollar-priced commodities cheaper for holders of other currencies, which could boost demand and prices.

TECHNICALS: Copper is struggling to hold above support at $6,725-$6,730, where the 21-day moving average currently sits. A break below will see support at $6,690 the 50-day average.

TIN: Stocks of the soldering metal in LME registered warehouses at 4,575 tonnes are down more than 15% since Oct. 16 and at their lowest since August.

Worries about supplies on the LME market have created a premium for the cash over the three-month contract . It rose to $29 a tonne last week, the highest since late July and was last at $6 a tonne.

Three-month tin was down 0.2% at $17,900 a tonne.

ECB: The European Central Bank is expected to resist pressure to unveil fresh stimulus measures on Thursday but it is likely to pave the way for action in December.

OTHER METALS: Aluminium was down 0.7% at $1,797 a tonne, zinc was flat at $2,529, lead climbed 1.7% to $1,823 and nickel ceded 1.3% to $15,530.

Comments

Comments are closed.