Copper, Base Metal Melt Like Ice as demand Concerns loom after Weak China Data

Copper Market News Today, 17 July 2023: Base metals prices melt like ice on Monday despite support from weakness in the dollar after China’s sluggish economic data fanned demand concerns.

Three-month copper on the London Metal Exchange (LME) copper was down 3% at $8,464 per metric ton by 0844 GMT, while the most-traded August copper contract on the Shanghai Futures Exchange HG slid 1% to 68,740 yuan per metric ton.

China’s economy grew at a frail pace in the second quarter as demand weakened at home and abroad, with the post-COVID momentum faltering rapidly and raising pressure on policymakers to deliver more stimulus to shore up activity.

Coupling with demand concerns were rising production of industrial metal.

Last month China’s non-ferrous output continued to rise on-year, including aluminium. And the rising supplies against tepid demand raised expectations of inventories pile up in the market.

Copper inventories in SHFE warehouses (CU-STX-SGH) rose for a third consecutive week last Friday to 82,690 metric tons.

There’s more supply than demand in the spot market, pushing down spot premium in the market and weighing downward pressure on futures prices, said analysts at Meierya Futures.

Refined copper discount dropped to 40 yuan a metric ton last week, a five month low. (SMM-CU-PND)

Source: Reuters

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