LONDON: Copper prices in London fell on Tuesday after four sessions of gains amid slower manufacturing activity growth in top consumer China, but were on track for their largest monthly jump in more than three years amid concerns about tight supply.
Benchmark copper on the London Metal Exchange (LME) was down 0.4% to $10,093 a metric ton by 1007 GMT after hitting a fresh two-year high of $10,208 in early trading.
Prices are on track for a 14% gain this month, their best since February 2021, as BHP Group’s bid for Anglo American brought worries of future supply tightness amid rising demand from energy transition and artificial intelligence into the spotlight.
However, there are concerns about demand in China and a lack of signs of near-term major market tightness. The global copper market faces a surplus of 162,000 this year and a surplus of 94,000 tons in 2025, the International Copper Study Group said on Monday.
The Shanghai Futures Exchange is closed for China’s Labour Day holiday on May 1-5.
Copper hits two-year high, buoyed by BHP bid for Anglo
“With the upcoming holiday season in China, we remain cautious about potential volatility, given a lack of liquidity during the period,” said Daria Efanova at brokers Sucden Financial.
Providing some support to copper, inventories in the LME-registered warehouses were at 116,125 tons, the lowest in more than three weeks after 1,375 tons of outflows from Rotterdam and New Orleans, data showed.
The discount for LME cash copper over the benchmark three-month contract narrowed down to $71.6 at the market close on Monday, its smallest in six months, from $122.85 on April 25.
Aluminium fell 0.5% to $2,576.50, zinc lost 0.4% to $2,931.50, lead slipped 0.1% to $2,227.50, tin was down 1.5% to $32,000 and nickel edged up 0.1% to $19,175.
Comments
Comments are closed.