METALS-Copper set for weekly fall as demand outlook darkens

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Updates prices) BEIJING, May 12 (Reuters) - London copper climbed on Friday but prices were set for their biggest weekly drop since November, as gloomy global economic performance darkened metals demand outlook, against rising supplies.


Three-month copper on the London Metal Exchange bounced up 1.1% to $8,250.50 a tonne by 0740 GMT, having touched a five-month low in the previous session.


Still, the contract has lost 3.8% so far this week, its biggest weekly drop since last November.


The most-traded June copper contract on the Shanghai Futures Exchange fell 2.6% to a four-month low at 64,610 yuan ($9,347.38) a tonne.


China's industrial metals consumption has remained subdued in the second quarter, which is traditionally a peak demand season, due to a slow economic recovery and sluggish export market. A slew of downbeat data this week suggested a sluggish economic recovery in the world's second largest economy, exacerbating concerns over metal demand outlook, amid rising supplies of the metal.


Production at 22 smelters surveyed by Antaike, with a total capacity of 11.12 million tonnes, totalled 886,700 tonnes last month, up 18.5% from a year ago. Copper inventories in LME warehouses climbed to a near two-month high on Thursday.


A risk-off tone across markets sparked by weak economic data weighed on sentiment across the complex, exacerbated by a stronger USD, which dented investor appetite, analysts at ANZ said in a research note.


The U.S. dollar was clinging close to a more than one week peak on Friday, as data pointed to a slowing U.S. economy, with investors betting that the Federal Reserve would further pause its interest rate increases.


LME aluminium gained 0.6% to $2,224 a tonne, nickel climbed 1.4% to $22,075, while lead slid 0.5% to $2,098, tin shed 2.2% to $24,750 and tin declined 2.3% to $24,730. SHFE aluminium fell 1.6% to 17,870 yuan a tonne, zinc lost 2.4% to 20,650 yuan, lead eased 0.4% to 15,230 yuan, while nickel slid 1.9% to 168,910 yuan, and tin dropped 4.5% to 197,130 yuan. For the top stories in metals and other news, click or ($1 = 6.9121 Chinese yuan renminbi) (Reporting by Siyi Liu and Dominique Patton; editing by Eileen Soreng, Rashmi Aich and Uttaresh Venkateshwaran)


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.