Shanghai Futures Exchange copper fell 2.1 percent to 46,660 yuan ($6,776) a tonne on Wednesday on doubts over the economic agenda of US President Donald Trump. ShFE nickel and lead dropped 2 percent or more, while ShfFE zinc closed 1.4 percent lower, pulled down by losses in steel Concerns that the US would not push through corporate tax cuts as promised before last year's election pulled down stocks in Asia, with the negative sentiment spilling into metals, said analyst Daniel Morgan of UBS in Sydney.
"People have also been looking at a resumption of copper production at Freeport, and the possibility of a resolution of the strike at Escondida soon," he said, adding that speculators were now locking in profits. "In the background, the physical trade is tightening day by day. We are still bullish copper." The global copper market is expected by some analysts to fall into deficit this year for the first time in half a decade after a series of mine disruptions crimped supply amid solid China demand.
Comments
Comments are closed.