Off The Wire
METALS-Copper dips on month-end profit-taking, firmer dollar
Copper was still on course, however, for a 6.6% gain in July, having risen every month since April amid a China-led recovery in demand following the coronavirus outbreak. Copper has surged more than 40% since touching the lowest in over four years in March.
Data showed on Friday that China's factories stepped up
activity in July for a fifth consecutive month as the
manufacturing Purchasing Manager’s Index marked its highest
reading since March. "The numbers in China could continue to recover," said Xiao Fu, head of commodity market strategy at Bank of China International in London. "Normally during the summer months there tends to be a seasonal slowdown, but this year could be different because companies will try to ramp up as much as they can to make up for lost time earlier this year," Fu said.
* DOLLAR: A slightly firmer dollar index weighed on metals, although it was still on track for its biggest monthly decline in 10 years.
A stronger dollar makes dollar-denominated metals more
expensive for holders of other currencies.
* LME STOCKS: Copper inventories in LME warehouses fell to new six-month lows of 128,125 tonnes, the lowest since Jan. 17.
* PRICES: LME aluminium shed 0.4% to $1,712.50 a tonne, but was set for a near 6% jump in July, which would be its biggest monthly rise since April 2018. Zinc climbed to a six-month peak of $2,334 and was headed for a monthly gain of 13%, the most since September 2012. It was last up 1.5% at $2,321. Nickel rose 0.4% to $13,780, lead gained 0.2% to $1,876, and tin added 0.3% to $17,865. (Additional reporting by Tom Daly in Beijing Editing by David Holmes/Kirsten Donovan/Jane Merriman)
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