LME copper eyes biggest weekly drop in 15 mths on China sale plan, dollar

Article content

HANOI — London copper prices were set on Friday for their biggest weekly fall since March 2020 as the dollar firmed on the prospect of U.S. interest rate hikes and after China announced a plan to sell part of its reserves of the metal.

Three-month copper on the London Metal Exchange was down 0.8% at $9,242.50 a tonne by 0710 GMT, pushing its loss for the week to 7.6% and putting it on track for its steepest weekly fall since March last year, when the coronavirus hit demand.

The most traded July copper contract on the Shanghai Futures Exchange dropped to 66,960 yuan ($10,394) a tonne, its lowest since April 15, before paring some losses to close at 67,260 yuan a tonne, still down 2.6%.

The dollar was headed for its biggest weekly gain in nearly nine months as investors scrambled to price in a sooner-than-expected ending to extraordinary U.S. monetary stimulus in the days after a surprise shift in tone from the Federal Reserve.

A stronger dollar makes greenback-priced metals more expensive and less appealing to holders of other currencies.

“Metals were suffering from equity markets that started to fall, and tapering and potential rises in interest rates unnerving investors,” said Malcolm Freeman, a director at UK broker Kingdom Futures.

Article content

“It felt like the investment community was reducing its exposure.”

Prices had already been under pressure after top metals consumer China announced a plan on Wednesday to sell state reserves of copper, aluminum and zinc in an effort to curb a strong price rally in commodities.


* LME aluminum fell 0.3% to $2,392 a tonne, nickel rose 1% to $17,345 a tonne, ShFE aluminum dropped 1.8% to 18,380 yuan a tonne and zinc shed 3.1% to 21,935 yuan a tonne.

* The speculative net long in SHFE copper declined to 9.5% of open interest on Thursday, the lowest since Nov 24 last year and down from a mid-May high of 54.7%, Marex Analytics data showed.

* A single party controls 50%-80% of available zinc stocks and short-term futures, LME data showed.

* For the top stories in metals and other news, click or

($1 = 6.4419 yuan) (Reporting by Mai Nguyen; Editing by Subhranshu Sahu, Aditya Soni and Jan Harvey)

Source link


How to Ensure Data Integrity in an Organization

Organizations are constantly creating and gathering a lot of data that they may encounter issues when it comes to storing and managing the...

Insider trading probe into Taiwan vaccine maker uncovers wider issues

An insider trading probe into a Taiwanese maker of Covid-19 vaccines has raised wider concerns over financial oversight in the country and entangled...

Do you know about the Different Aircraft Antenna Varieties?

A myriad of antennas is frequently seen all over the fuselage of a plane. The advancement in technology has made it possible to incorporate...

Combating Brilliance Bias: We Should Celebrate Smart Women More

Brilliance bias is the tendency to consider brilliance as a male characteristic. Despite multiple studies showing that gender plays no role in brilliance,...

iCloud Bypass Official Application For Manage iCloud Locked Issue

iCloud Bypass Online Tool For Unlock iCloud AccountThe iCloud issue affects people a lot since the iCloud account isn't accessible by any method. However,...