Mumbai, 14 Jun (Commoditiescontrol): Copper prices slipped and nickel touched its lowest in over two months on Friday, pressured by a firm dollar and rising inventories highlighting a supply surplus.
Three-month copper on the London Metal Exchange (LME) lost 0.7% to $9,731 per metric ton by 4 pm IST. Market analysts noted that the recent dip in metals was necessary after an unjustified strong move. Copper has fallen 12% since hitting a record $11,104.50 last month, driven by speculators and investment funds. Analysts mentioned that buyers would be hesitant until copper breaks the $10,000 psychological barrier.
A stronger dollar has made commodities priced in U.S. currency more expensive for buyers using other currencies. Copper inventories in LME-registered warehouses have increased by 28% over the past month, reaching a four-month high. This has contributed to the LME cash contract's discount to the three-month contract, with the discount nearing a record high of $133 per ton on Tuesday.
LME nickel eased 0.8% to $17,505 per ton, its weakest since April 8, down about 3% for the week. Shanghai Futures Exchange nickel stocks are at their highest since November 2020, while LME inventories reached 87,480 tons, the highest since February 2022. Rising stockpiles are due to increased production of high-grade cathodes by Chinese producers. Analysts indicated that the market would shift into surplus in the third quarter as Indonesian supply grows.
Other metals saw declines as well, with LME aluminium down 1.1% to $2,532.50 per ton, zinc sliding 2.1% to $2,799.50, lead down 0.8% at $2,149.50, and tin slipping 0.3% to $32,700.
(By Commoditiescontrol Bureau; +91-9820130172)
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