METALS-LME copper heads for first monthly drop since October

Kitco Media
By Reuters
Published:
Updated:
Reuters
Feb 28 (Reuters) - London copper prices were set for their first monthly drop in four on Tuesday, weighed down by a firmer U.S. dollar and as demand from top consumer China remained subdued. Three-month copper on the London Metal Exchange was almost unchanged at $8,805.50 a tonne, as of 0516 GMT, but down 4.5% on a monthly basis, the first decline since October. The most-traded April copper contract on the Shanghai Futures Exchange increased 0.1% to 68,780 yuan ($9,913.52) a tonne, but was also heading for a monthly decline. Copper prices rose strongly in January as hopes grew for a strong consumption recovery from China, which accounts for half of global copper demand, after the country lifted strict pandemic restrictions. However, copper demand in China remained weak in February, weighing on the prices, while a stronger dollar also made the greenback-priced metal more expensive to holders of other currencies. Analysts expect the Chinese economy to recover strongly from as early as March, as the government is likely to roll out more stimulus at the National People's Congress. Copper inventories buildup in China slowed last week, with the weekly increase in SHFE copper stockpiles by Friday being the slowest so far this year. Yangshan copper premium , which reflects demand to import copper into China, rose to $26.50 a tonne on Monday, its highest since Feb. 1. LME aluminium fell 0.5% to $2,352 a tonne, zinc rose 0.1% to $2,992 a tonne, tin advanced 0.9% to $25,695 a tonne and lead eased 0.2% to $2,108 a tonne. SHFE aluminium increased 0.1% to 18,435 yuan a tonne, nickel was up 0.7% at 197,940 yuan a tonne and zinc advanced 0.1% to 23,125 yuan a tonne. For the top stories in metals and other news, click or DATA/EVENTS (GMT) 0745 France GDP QQ Final Q4 0745 France CPI (EU Norm) Prelim YY Feb 0745 France Producer Prices YY Jan 1500 US Consumer Confidence Feb
($1 = 6.9380 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu)

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