Shanghai Futures Exchange copper climbed 0.8 percent to 40,020 yuan ($6,304) a tonne on Thursday while ShFE tin rallied 1.6 percent amid a shortfall in futures positions, despite ample physical supply. Many miners said they were reconsidering production plans and as a weaker dollar buttressed prices. "Cuts to supply will support prices, they won't provide the reason for a sustained rally," said analyst Lachlan Shaw at UBS in Sydney.
"It's a patchy recovery still. We have China third quarter growth on Monday and it wouldn't be surprising to see some pretty weak numbers. There's general lethargy in emerging market demand, it's broader than China. Until we see demand catch up and move past capacity, I don't see how we are going to get sustained lift in prices."
Comments
Comments are closed.