Gold Silver Reports → Copper prices fell on Thursday reversing earlier gains as worries about demand in top consumer China were reinforced by equity market losses in Shanghai, but output cuts to help balance the market limited the losses.
Benchmark copper on the London Metal Exchange ended down 0.8 percent at $4,602. Earlier this week, prices touched a two-week high of $4,701 a tonne. Traders said the mood had turned negative after New York opened and reacted to the more than 6 percent drop in Chinese equities, their biggest one-day loss in a month.
Copper demand growth in China slowed to about 2 percent last year and analysts expect a similar or lower number this year. Analysts estimate about 600,000 tonnes of mined copper output has already been axed and expect up to 200,000 tonnes of additional cuts this year, leaving the market more balanced. Three month Aluminium slid 0.6 percent to $1,557 a tonne. It hit a four-month high of $1,582 a tonne on Tuesday. But Aluminium is expected to come under renewed pressure due to oversupply and a massive inventory overhang. Zinc lost 1.4 percent to $1,730 a tonne. Earlier it rose to a four month high of $1,795 on worries about tighter supplies. Lead fell 0.3 percent at $1,686 a tonne. – Neal Bhai Reports