Prices of base metals largely fell on Monday, as caution prevailed amid conflicting signals on demand and ahead of a key meeting in China and the U.S. election.
Three-month copper on the London Metal Exchange fell 0.8% to $9,526.50 per metric ton by 0505 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange rose 0.1% to 76,520 yuan ($10,727.60) a ton.
China’s top legislative body will meet from Nov. 4 to Nov. 8. However, there is no mention of the highly anticipated debt and other fiscal measures on the meeting agenda.
Investors are cutting their exposure amid the many rumours and disappointment on economic support measures from China so far, said a metals trader.
The Nov. 5 U.S. presidential election will decide what policy direction the world’s biggest economy will follow in the next four years.
A lack of aggressive Chinese stimulus so far has dented copper’s demand outlook, but its price has been supported by supply concerns amid mine disruptions and calls for more discipline in China’s rapid rate of smelting expansion, analysts and traders said.
China’s industrial profits plunged in September, recording the steepest monthly decline of 2024 and reflecting poor demand.
The country’s central bank launched a new lending tool earlier in the day to inject more liquidity into the market and support credit flow in its banking system.
LME aluminium fell 0.5% to $2,663 a ton, nickel edged down 0.3% at $16,115, zinc dropped 1.8% to $3,046, lead declined 0.9% to $2,028, while tin rose 0.3% to $31,410.
SHFE aluminium edged up 0.6% at 20,955 yuan a ton, tin climbed 1.1% to 257,170 yuan, while nickel fell 0.4% to 126,120 yuan, zinc dropped 1.8% to 24,820 yuan and lead eased 0.3% to 16,750 yuan.
Comments
Comments are closed.