BEIJING: Copper prices were flat on Monday after clocking a weekly gain in the last session supported by supply headwinds, while investors cautioned against macro uncertainty.
Three-month copper on the London Metal Exchange was unchanged at $8,547.50 per metric ton by 0450 GMT, after posting a 1.2% weekly gain on Friday.
Market was supported by copper mine supply disruption, which might result in lower-than-expected production of the refined metal, GF Futures analysts said.
Fees to process the raw material have fallen by a quarter in less than three months in the Chinese spot market, mainly due to expectations of declining supply from First Quantum’s Cobre mine in Panama.
November refined copper production in China, the world’s top smelter, fell below expectation to 960,800 tons as a result of tight supply for copper blister, according to Shanghai Metals Market.
But investors’ caution against macro uncertainty capped gains in the metal prices.
Market is now awaiting the Bank of Japan’s monetary decision on Tuesday.
Copper slides on firmer dollar
The dollar index held steady after rebounding in the previous session, as the New York Federal Reserve president said it’s “premature” to speculate about interest rate cuts.
A firmer dollar typically weighs on metal prices as it makes it more expensive to buy the greenback commodity.
The most-traded January copper contract on the Shanghai Futures Exchange dipped 0.1% to 68,640 yuan ($9,628.28) per ton.
LME aluminium was listless at $2,248.50 a ton, nickel fell 1.7% to $16,860, zinc was unmoved at $2,531.50, lead slid 0.1% to $2,078.50, and tin shed 0.6% to $25,020.
SHFE aluminium increased 1% to 18,920 yuan a ton, nickel nudged 0.1% down to 132,670 yuan, zinc climbed 0.3% to 20,860 yuan, lead moved 0.5% higher to 15,655 yuan, and tin decreased 1.2% to 207,450 yuan.
Comments
Comments are closed.