METALS-Copper drops on firm dollar, China worries


(Add analyst comment, update prices, add LONDON date)

LONDON, Sept.28 (Reuters) – Copper prices fell on Tuesday amid a stronger dollar and concerns about the impact of power cuts on major metal consumers in China, where the economy is s ‘is already weakened.

Three-month copper on the London Metal Exchange fell 0.9% to $ 9,274 at 10:00 GMT after rising 0.3% on Monday.

Copper has eased from a record high of $ 10,747.50 reached in May, but is still up 20% so far this year.

“We have the risk of a sudden surge in the dollar, which will weigh on the market,” said Gianclaudio Torlizzi, partner at the consultancy firm T-Commodity in Milan.

“And we have a worsening situation in China due to a double shock – the Evergrande credit crunch and a shock from the energy crisis. It’s a very difficult market to negotiate, so I think a lot of people will be left on the sidelines.

In China, a coal supply shortage, tougher emissions standards and strong demand from manufacturers and industry have pushed coal prices to record highs and triggered widespread restrictions on use.

The US dollar hit its highest level in more than five weeks on the rise in bond yields, making dollar-denominated metals more expensive for buyers using other currencies.

* Profit growth for Chinese industrial companies slowed for a sixth month, with factories battling high commodity prices, COVID-19 outbreaks and parts shortages.

* Nickel LME was the biggest loser, slipping 2% to $ 18,570 after losing more than 2% on Monday. “The electricity reduction policy affects some of the downstream nickel consumption,” brokerage firm Huatai Futures said in a note.

* LME tin rebounded 0.7% to $ 35,340 per tonne, after falling more than 4% on Monday after restrictions on electricity consumption in China also reduced demand for refined tin.

* LME aluminum gained 1% to $ 2,911, zinc added 0.2% to $ 3,073 and lead climbed 0.6% to $ 2,175.

* For the best articles on metals and other news, click on or (additional reporting by Mai Nguyen in Hanoi and Tom Daly; edited by David Evans)

Source link

Previous FKI sends letter of gratitude to US Senator Jerry Moran
Next Frost & Sullivan Recognizes Menlo Security as a Growth and Innovation Leader in the Asia-Pacific Secure Web Gateway Market

No Comment

Leave a reply

Your email address will not be published. Required fields are marked *