METALS-Copper up on robust China data and falling inventories
(Recasts, updates prices)
By Pratima Desai
LONDON, Nov 8 (Reuters) - Copper prices rose on Monday as
strong export growth data from top consumer China, falling
inventories and the passing of a $1 trillion U.S. infrastructure
bill boosted sentiment, though gains were capped by concern over
Benchmark copper on the London Metal Exchange (LME)
was up 1.2% at $9,637 a tonne at 1658 GMT. The price of copper,
which is used in the power and construction industries, has
traded in a narrow $300 range over the past week as the market
awaits more definitive information about future demand
"Industrial metals are still faced with headwinds amid signs
of an easing energy crisis and demand destruction that added
pressure on the economic outlook from the largest consumer
(China) and elsewhere in the world," said ING analyst Wenyu Yao.
"As a result, the outcomes from China's Politburo meeting
this week will be closely scrutinised for clues on demand-side
prospects for metals." EXPORTS: China's export growth beat forecasts, helped by
booming global demand ahead of the winter holiday season, an
easing power crunch and improvement in supply chains that have
been badly disrupted by the COVID-19 pandemic. COPPER: Stocks in LME-registered warehouses have more than
halved since late August to 115,525 tonnes. Cancelled warrants - metal earmarked for delivery - at 62%
suggests overall stocks are set to fall further. Concerns about
copper availability on the LME market have created a premium for
cash copper over the three-month contract .
USA: President Joe Biden on Saturday hailed congressional
passage of a long-delayed $1 trillion infrastructure bill, which
supported sentiment in industrial metals markets. TECHNICALS: Copper has yet to break decisively below a
congestion area between $9,450 and $9,490, which houses the
50-day moving average, the 100-day moving average and a
Fibonacci retracement level.
Further strong support comes in at $9,350, where the 200-day
moving average currently sits.
OTHER METALS: Aluminium rose 2.1% to $2,609 a tonne,
zinc added 1.4% to $3,273, lead rose 0.2% to
$2,357, tin was up 0.9% at $37,400 and nickel gained 1.1% to $19,640.
(Reporting by Pratima Desai
Editing by David Clarke and David Goodman
LME price overview COMEX copper futures All metals news All commodities news Foreign exchange rates SPEED GUIDES ))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.