MUMBAI, 24 Jun (Commoditiescontrol): Copper prices remained subdued on Monday, impacted by a stronger U.S. dollar and ongoing concerns about weak demand from China, the world’s largest consumer of the metal. On the London Metal Exchange (LME), three-month copper fell 0.3% to $9,648.50 per metric ton, while the most-traded copper contract on the Shanghai Futures Exchange (SHFE) dropped 1.6% to 78,670 yuan ($10,833.55) per ton.
Earlier this year, expectations of supply shortages and robust future demand had driven LME copper prices to record highs above $11,100 per ton in May. However, prices have since declined by 13%, largely due to uncertainties surrounding the recovery in Chinese demand and the timing of potential U.S. interest rate cuts.
China's fiscal revenue fell by 2.8% in the first five months of 2024 compared to the same period last year, reflecting weak demand that continues to hinder the nation's economic recovery. This economic sluggishness has further dampened sentiment in the copper market.
Additionally, the U.S. dollar hovered near an eight-week peak, making dollar-priced metals less attractive to buyers using other currencies. This currency dynamic exerted further downward pressure on copper prices.
From a technical perspective, LME copper may retest support levels at $9,579 per ton this week. A break below this level could potentially push prices into the $9,262-$9,368 range.
Other base metals also faced mixed fortunes. LME aluminium decreased by 0.5% to $2,501.00 per ton, nickel fell 0.4% to $17,155.00, zinc dropped 0.4% to $2,834.00, and lead slid 0.4% to $2,181.50. In contrast, tin edged up 0.3% to $32,690.00 per ton.
On the SHFE, aluminium declined nearly 1% to 20,360 yuan per ton, nickel dipped 1% to 134,050 yuan, and zinc eased 1% to 23,655 yuan. Lead, however, gained 0.6% to 18,890 yuan, while tin dropped 0.3% to 273,780 yuan.
Overall, the base metals market remains influenced by macroeconomic factors, with currency fluctuations and economic indicators from major economies like China playing crucial roles in price movements.
(By Commoditiescontrol Bureau; +91 98201 30172)
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