METALS-Copper prices fall on weak China demand

Kitco Media
By Reuters
Published:
Updated:
Reuters
Feb 21 (Reuters) - Copper prices in London edged down on Tuesday as concerns over tepid consumption in top consumer China dented risk sentiment, even as traders and investors hope for a rebound in demand. Three-month copper on the London Metal Exchange fell 0.7% to $9,080 a tonne by 0311 GMT, retreating from its highest in more than two weeks hit in the previous session. The most-traded March copper contract on the Shanghai Futures Exchange rose 1% to 69,720 yuan ($10,151.87) a tonne, tracking overnight gain in London. Hopes for a demand recovery in top consumer China post COVID-19 have supported prices, but some market participants now expect the rebound to kick in by March, disappointing those who had hoped for an early rebound in February. Higher copper prices have also discouraged some downstream buyers to purchase the metal in large volume, and they are waiting for supportive policy from the Chinese government to boost demand for their products. LME copper prices leaped about 15% in the first two weeks of January, then lost about 9% within a month and have since been in rangebound in between $8,700 and $9,200. LME aluminium dipped 0.8% to $2,438.50 a tonne, zinc fell 0.6% to $3,107 a tonne, lead shed 0.4% to $2,145.50 a tonne while tin rose 0.2% to 26,750 yuan a tonne. China's Yunnan province has asked aluminium producers to further cut their electricity usage amid a power supply crunch, potentially cutting annual aluminium output capacity by about 740,000 tonnes, Shanghai Securities News said on Monday. For the top stories in metals and other news, click or DATA/EVENTS (GMT) 0815 France S&P Global Mfg, Serv, Comp Flash PMIs Feb 0830 Germany S&P Global Mfg, Serv, Comp Flash PMIs Feb 0900 EU S&P Global Mfg, Serv, Comp Flash PMIs Feb 0930 UK Flash Comp, Mfg, Serv PMIs Feb 1000 Germany ZEW Economic Sentiment Feb 1000 Germany ZEW Current Conditions Feb 1445 US S&P Global Mfg, Serv, Comp Flash PMIs Feb 1500 US Existing Home Sales Jan
($1 = 6.8677 yuan) (Reporting by Mai Nguyen in Hanoi Editing by Vinay Dwivedi)

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