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LME copper falls on caution ahead of key US, China data

Tan KW
Publish date: Tue, 13 Aug 2024, 02:16 PM
Tan KW
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HANOI London copper fell on Tuesday, snapping a three-session rally, as investors awaited data from the United States and China later this week for more clues to support prices.

Three-month copper on the London Metal Exchange (LME) fell 0.6% to US$8,973 per metric tonne by 0203 GMT.

The most-traded September copper contract on the Shanghai Futures Exchange (SHFE) rose 1.1% to 72,470 yuan (US$10,091.49) a tonne, tracking overnight gains in London.

China is due to release its urban investment and loans data this week, and the US will report its consumer prices figures on Wednesday, which will give clues to the timing of a rate cut by the Federal Reserve.

Copper prices in recent sessions were supported by improving demand from top consumer China, after five straight weeks of falling prices, with the premium to import copper into China at US$60 a tonne, rebounding from a US$20 discount in May.

A copper fabricator in China said improving order from the country's State Grid and cheaper copper prices, which are 20% below a record high of US$11,104.50 a tonne hit in May, were supporting consumption.

"With resurfacing supply underperformance and signs of improved demand in China, we foresee upside to copper prices this week," said Benchmark Mineral Intelligence analysts in a note.

Jiangxi Copper's subsidiary has suspended its plant in Shandong province - which produced 203,023 tonnes of copper last year - after a fatal copper furnace accident.

LME aluminium eased 0.1% to US$2,304 a tonne, nickel dropped 0.6% to US$16,255, zinc decreased 0.3% to US$2,735.50, lead was down 0.3% at US$2,041.50, while tin dropped 0.9% to US$31,300.

SHFE aluminium fell 0.4% to 19,070 yuan a tonne, nickel eased 0.3% to 128,660 yuan, tin edged down 0.1% at 256,800 yuan, while zinc rose 0.8% to 23,100 yuan, and lead advanced 0.6% to 18,075 yuan.

 


  - Reuters

 

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