Reuters logo
METALS-London copper teeters near 4-month low as stocks rise
May 4, 2017 / 5:43 AM / 7 months ago

METALS-London copper teeters near 4-month low as stocks rise

 (Adds comment, detail, updates prices)
    By Melanie Burton
    MELBOURNE, May 4 (Reuters) - London copper stumbled towards
its lowest this year on Thursday on what traders said was
China-based selling after a big build-up in exchange stocks and
on expectations two U.S. rate rises this year could curb
interest in dollar-denominated metals.
    London Metal Exchange copper stocks jumped by more than
30,000 tonnes, the most recent data showed, with another large
increase anticipated. 
    "The LME delivery triggered the sell-off yesterday and I
heard that some Chinese entered on the short side yesterday.    
I heard there is more to come today," a Shanghai-based trader
    "But Chinese consumption at the moment is actually quite
    Concerns that heat is evaporating from China's economy have
added to downside pressure on metals, exacerbated by China's
weaker Caixin PMI numbers, said Kingdom Futures in a report.
    "Later today there is a mass of U.S. data including key
employment numbers, durable goods and factory orders and if
these also fall below expectations it would be reasonable to
expect another wave of afternoon selling."
    * LME COPPER: LME copper fell half a percent to
$5,574.50 a tonne by 0735 GMT, having earlier hit $5,542 a
tonne, its lowest since April 20 when it hit $5,530, which was
its weakest since early January. Prices on Wednesday recorded
the biggest one day drop in 18 months.    
    * LME STOCKS: LME copper stocks surged by 31,250 tonnes data
on Wednesday showed, raising concerns over weak demand.
    * SHFE COPPER: Shanghai Futures Exchange copper
fell 3.2 percent to 45,180 yuan ($6,551) a tonne.
    * CHINA STEEL: Shanghai zinc and nickel
were also hit hard, falling 3 percent and more than 4 percent
respectively and tracking weakness in China steel.
    * CHINA ECONOMY: Growth in China's services sector cooled to
its slowest in almost a year in April as fears of slower
economic growth dented business confidence, even as cost
pressures eased, a private survey showed on
    * U.S. RATES: The U.S. Federal Reserve kept interest rates
unchanged on Wednesday and downplayed weak first-quarter
economic growth while emphasising the strength of the labour
market, in a sign it was still on track for two more rate rises
this year.
    * COPPER: Copper output in Democratic Republic of Congo,
Africa's top producer, hit 274,316 tonnes in the first quarter
of 2017, a more than 20 percent increase over the same period
last year, the central bank said on Wednesday.
    * GLENCORE: Mining-trading group Glencore Plc has
hired the Bank of Nova Scotia to sell a portfolio of
royalty assets, including one for the Antamina copper-zinc mine
in Peru, four people familiar with the process told Reuters.
 BASE METALS PRICES                 0739 GMT           
 Three month LME copper                          5578.5
 Most active ShFE copper                          45170
 Three month LME aluminium                         1913
 Most active ShFE aluminium                       13885
 Three month LME zinc                            2557.5
 Most active ShFE zinc                            21380
 Three month LME lead                            2173.5
 Most active ShFE lead                            15995
 Three month LME nickel                            9100
 Most active ShFE nickel                          76270
 Three month LME tin                              19780
 Most active ShFE tin                            141400
 BASE METALS ARBITRAGE                                 
 LME/SHFE COPPER                  LMESHFCUc3     304.58
 LME/SHFE ALUMINIUM               LMESHFALc3   -1399.29
 LME/SHFE ZINC                    LMESHFZNc3     205.46
 LME/SHFE LEAD                    LMESHFPBc3   -2006.48
 LME/SHFE NICKEL                  LMESHFNIc3    1300.01
 ($1 = 6.8967 Chinese yuan renminbi) 

 (Reporting by Melanie Burton; Editing by Kenneth Maxwell and
Gopakumar Warrier)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below