METALS-Copper set for third straight weekly loss on demand concerns

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Updates prices) May 5 (Reuters) - Copper prices were on track for a third consecutive weekly drop on Friday as tepid demand in top consumer China and improving supply pressured the market.


Three-month copper on the London Metal Exchange (LME) was up 0.6% at $8,543 a tonne by 0742 GMT, helped by a weaker dollar, but the contract was down 0.6% over the week. The most-traded June copper contract on the Shanghai Futures Exchange fell 0.3% to 66,810 yuan ($9,664.26) a tonne. It was down 0.5% over the week to register a third straight weekly decline. Chinese factory activity contracted unexpectedly in April as orders fell, with poor domestic demand dragging on the metals-hungry manufacturing sector while supply of copper scrap in China is improving, analysts said. "The recovery momentum has slowed ... There is a strong certainty that the production of scrap copper smelting on the supply side will remain at a relatively high level in the second quarter, while the consumption side has weakened from the previous quarter," Chinese brokerage Jinrui Futures said in a note. However, prices were cushioned by a softer dollar as traders priced in interest rate cuts by the U.S. Federal Reserve. LME aluminium edged up 0.7% to $2,303 a tonne, tin climbed 1.6% to $26,010, zinc gained 1% to $2,648 while lead added 1.2% at $2,127 and nickel advanced 0.3% to $24,065. SHFE aluminium was down 0.7% at 18,320 yuan a tonne, nickel dropped 2.1% to 183,260 yuan, lead eased by 0.1% to 15,345 while tin fell 0.4% to 208,830 yuan and zinc gained 0.6% to 21,285 yuan. For the top stories in metals and other news, click or ($1 = 6.9131 yuan) (Reporting by Mai Nguyen in Hanoi Editing by Sherry Jacob-Phillips and David Goodman )

mai.nguyen.thomsonreuters.com@reuters.net))

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.