Base Metals: Copper prices Skids to lowest in a month as investors reduce risk

Base Metals: Copper prices have dropped 0.35% this week however they will now be at 4 pyo per pound. Gold and silver had also risen from covid-lows to $9,700 metric tonne in New York. The bellwether has been fuelled by a widely-held belief that demand for it should be heavily supported by the economic post-pandemic boom but also by the worldwide push to decarbonise.

Copper prices slumped on Thursday for a fourth session to the lowest in more than a month as investors curbed buying of risky assets and on worries about expected inventory gains.

Base Metals COPPER Prices

Three-month copper on the London Metal Exchange CMCU3 had dropped 0.7% to $9,343 a tonne by 1100 GMT, its lowest since Oct. 11.

The most-traded December copper contract on the Shanghai Futures Exchange SCFcv1 closed down 1.8% at 68,910 yuan ($10,806.19) a tonne.

“We are heading towards the end of the year so there’s some risk reduction,” said Gianclaudio-Torlizzi, partner at consultancy T-Commodity in Milan.

“We’re hearing about potential exports of copper from China to LME warehouses, and dollar is strong, which is another driver which might force some more liquidation.”

London copper set for best week since 2016 as prices exceed $10,000/tonne

Technical signals were also flashing red after copper slipped below its 200-day moving average.

Torlizzi, however, is bullish for copper and expects LME prices next year to surpass their record of $10,747.50 touched in May.

  • The dollar .DXY hovered just below a 16-month peak as rising inflation supported expectations of U.S. rate hikes around the middle of next year.
  • The premium of LME cash aluminium over the three-month contract MAL0-3 rose to $10.73 a tonne, its highest since Aug. 31, indicating tightening nearby supplies. It was at a discount of $23.50 two weeks ago.
  • China’s aluminium imports in October rose by 17.4% from the previous month to their highest since July, data from the General Administration of Customs showed on Thursday.
  • LME aluminium CMAL3 fell 0.8% to $2,597 a tonne, zinc CMZN3 declined 1.2% to $3,154.50, lead CMPB3 dropped 0.9% to $2,233, nickel CMNI3 gave up 0.8% to $19,195, but tin CMSN3 rose 0.2% to $38,040.
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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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