Copper falls as weak Chinese trade data weighs on demand hopes

11 May, 2023

Copper prices fell on Thursday, as subdued trade data from top consumer China darkened the economic outlook for the country, weighing on the metal’s demand prospects.

Three-month copper on the London Metal Exchange eased 0.1% to $8,470 a tonne by 0213 GMT, aluminium rose 0.1% to $2,270 a tonne, nickel fell 1% to $22,310 a tonne and tin was down 0.1% at $25,830 a tonne.

Data on Wednesday showed Chinese imports contracted sharply in April, while exports rose at a slower pace, reinforcing signs of feeble domestic demand despite the lifting of COVID curbs.

LME lead fell 0.4% to $2,129 a tonne and zinc lost 0.3% to $2,615 a tonne.

London metals prices were cushioned by a weaker dollar on slowing inflation in the U.S. A softer dollar makes greenback-priced metals cheaper to holders of other currencies.

Shanghai copper rebounds on low inventory

But physical metal demand in China remained soft, with the Yangshan premium falling to $21.50 a tonne on Wednesday, its lowest since March 10, indicating tepid appetite to import copper into China.

The most-traded June copper contract on the Shanghai Futures Exchange declined 1% to 66,570 yuan ($9,630.94) a tonne, nickel dropped 4.7% to 170,820 yuan a tonne, aluminium fell 0.5% to 18,19 yuan a tonne.

SHFE zinc decreased 1.2% to 21,165 yuan a tonne, tin eased 0.1% to 206,960 yuan a tonne while lead rose 0.1% to 15,300 yuan a tonne.

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