Copper hits peak since June on China optimism
LONDON: Copper continued its rally on Wednesday, rising to its highest levels since June as speculators bet that low...
Copper prices fell on Thursday, as the dollar firmed on US downturn concerns and physical metal demand slowed ahead of a long holiday in top buyer China.
Three-month copper on the London Metal Exchange fell 0.7% to $9,255 a tonne by 0131 GMT, aluminium declined 1.2% to $2,606.50 a tonne, zinc shed 1.4% to $3,356 a tonne and tin dropped 2.7% to $28,325 a tonne.
Chinese markets will be closed next week to celebrate the Lunar New year, leading to tepid purchases of metals.
Yangshan copper premium fell to $31.50 a tonne on Wednesday, its lowest since April 2022, indicating weakening demand for imported copper into China.
Weak US retail and manufacturing data on Wednesday stoked fears that the world’s top economy was headed for a recession, driving demand for the safe-haven dollar.
A stronger dollar makes greenback-priced metals more expensive for buyers holding other currencies.
However, LME copper was on track for a weekly gain and has risen 33% in past six months on bets of a demand recovery in top consumer China after it removed COVID-19 restrictions and amid expectations of a slowdown in the pace of US rate hikes.
Low copper inventories and unrest in Peru, the world’s second-biggest producer of mined copper, also supported prices.
The most-traded March copper contract on the Shanghai Futures Exchange rose 0.2% to 69,850 yuan ($10,355.82) a tonne, nickel increased 2.9% to 210,770 yuan a tonne and aluminium advanced 1% to 18,990 yuan a tonne.
SHFE lead fell 0.5% to 15,280 yuan a tonne, zinc eased 0.1% to 24,170 yuan a tonne, while tin rose 0.2% to 227,340 yuan a tonne.