Shanghai copper up

21 Nov, 2015

Shanghai Futures Exchange copper finished up 0.7 percent at 34,910 yuan ($5,469) a tonne on Friday, while Shfe zinc and lead rallied more than 2 percent each, as shorts booked profits. But Shfe nickel and tin suffered, both falling more than 1.5 percent. Many industrial metals have slumped to their lowest since the financial crisis on waning demand growth as top consumer China transitions away from manufacturing-led growth and towards a service-driven economy.
Metals used by China's stricken steel industry, such as nickel and zinc, have been especially hammered, in the downturn that has sent copper, lead and aluminium to six-year lows. "The main story is the steel outlook in China. Clearly the demand side remains extremely weak," said Dominic Schnider, analyst at UBS Wealth Management in Hong Kong. Chinese steel demand shrank around 6 percent in January-October, according to the China Iron and Steel Association. Shanghai steel prices plumbed record lows this week.

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