MUMBAI, 14 Jun (Commoditiescontrol): On Friday, copper prices slipped while nickel fell to its lowest level in over two months, driven by a strong dollar and rising inventories that underscored a supply surplus. Three-month copper on the London Metal Exchange (LME) decreased by 0.7%, settling at $9,731 per metric ton. The metal has shed 12% since reaching a record high of $11,104.50 last month, a peak spurred by speculative investments and funds.
The appreciation of the dollar exerted downward pressure on metals, as commodities priced in the U.S. currency became more expensive for buyers using other currencies. Additionally, copper inventories in LME-registered warehouses surged 28% over the past month, hitting their highest level in four months. This increase has contributed to the LME cash contract's discount to the three-month contract, a market structure known as contango, which neared a record high of $133 per ton on Tuesday.
Nickel prices on the LME also eased, dropping 0.8% to $17,505 per ton, marking their weakest point since April 8 and a weekly decline of about 3%. Shanghai Futures Exchange nickel stocks hovered around their highest levels since November 2020, while LME inventories climbed to 87,480 tons, the highest since February 2022. The buildup in stockpiles is partly due to increased production of high-grade cathodes by Chinese producers, which are deliverable on the LME.
CRU analyst Tong Tong noted that investors have been taking profits after nickel prices hit their highest levels since August 2023 in May, despite improving demand from the stainless steel sector and slowing supply growth in Indonesia during the second quarter.
Other metals on the LME also experienced declines: aluminium dropped 1.1% to $2,532.50 per ton, zinc slid 2.1% to $2,799.50, lead fell 0.8% to $2,149.50, and tin slipped 0.3% to $32,700.
The combination of a stronger dollar and rising inventories is creating downward pressure across the metal markets, highlighting ongoing volatility and the impact of global economic factors on commodity prices.
(By Commoditiescontrol Bureau; +91 98201 3018)
0 Comments 
Post Comment 
