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London copper falls on fears of Sino-US tensions, China inventory glut

Kitco News

London copper eased on Friday, hit by Asian stock markets turning risk averse on concerns over Sino-US ties after ride-hailing giant Didi announced delisting in New York and signs of rising inventories in top consumer China.

Three-month copper on the LME was down 0.5% at $9 460.5 a tonne, as of 02:50 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange inched 0.1% higher to 69 140 yuan ($10 847.36) a tonne.

Stocks fell on Friday after China's Didi said it would delist in New York, renewing concerns about US-China tensions and tech regulation.

Chinese refined copper spot premium has fallen from record high hit last month and was last at 430 yuan a tonne. ShFE stockpiles is at its highest since late October.

LME inventories of copper, often considered a gauge of global economic health, were also at their highest since October 8.

* China's embattled property developer Kaisa Group Holdings said it had failed to secure the minimum 95% approval needed from its offshore bondholders to extend the maturity of a $400-million note that is due next week, raising the risk of a default.

* Activity in China's services sector expanded at a slower pace in November amid rising inflationary pressures and continuing small-scale Covid-19 outbreaks, a private survey showed.

* China's property downturn is expected to continue into the first half of 2022, with home prices and sales falling as tight credit policies and a looming property tax dampen demand, a Reuters poll showed.

* The Omicron variant of COVID-19 could slow global economic growth by exacerbating supply chain problems and depressing demand, US Treasury Secretary Janet Yellen told the Reuters Next conference on Thursday.

* LME aluminium rose 1% to $2,625 a tonne, zinc was up 1% at $3,180 and nickel eased 0.3% to $19,890 a tonne.

* ShFE aluminium fell 0.6% to 18,770 yuan a tonne, nickel eased 0.4% to 147,550 yuan a tonne and tin was down 0.4% at 285,440 yuan a tonne.


* The dollar ticked higher amid a broadly calmer tone in markets as fears over Omicron's impact eased, but currency moves were muted ahead of a key US payrolls report that could clear the path to earlier Federal Reserve interest rate hikes.

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