LONDON: Copper prices slipped on Thursday as poor demand prospects particularly in top consumer China and an oversupplied market were reinforced by further inventory rises in London Metal Exchange approved warehouses.
Benchmark copper on the LME traded 0.5% lower at $9,855 a metric ton in official rings. Prices of the metal used in power and construction have recovered since hitting 10-week lows of $9485.5 on June 27. Optimism that China’s leaders will aim to boost growth with stimulus at their third plenum meeting on July 15-18 had helped support industrial metals in recent days.
“After the industrial metals managed to regain some lost ground on renewed rumours of stimulus measures in China, it seems that these hopes are fading again,” said Julius Baer analyst Carsten Menke. “For the still struggling property market, we believe the government’s focus remains on reinstating trust rather than starting a new construction wave.”
Data releases over the next few days on China’s yuan loans and total social financing, widely watched by metals analysts, could yield clues to future demand. Stocks of copper in LME warehouses jumped 11,300 tons on Wednesday taking the total to 206,775 tons, the highest since October 2021 and nearly double the levels seen in the middle of May.
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