October 21, 2015 / 2:51 AM / 5 years ago

METALS-London copper hits near 2-week low as demand sours

* Falling energy prices may exert more pressure on metals

* Copper market swings to 8,000 T surplus in July -ICSG (Updates prices)

By Melanie Burton

MELBOURNE, Oct 21 (Reuters) - London copper fell to its weakest in nearly a fortnight on Wednesday as a seasonal recovery after summer started to run out of steam amid ample supply and moderate demand from top user China.

“Consumers seem to be happy to believe the many analysts that predict prices below the major $5,000 barrier again soon,” said broker Triland in a note.

“With rallies being sold into by trade clients in Asia, it does look as if bears look set to prevail in the short term, absent some spectacular economic data or more serious producer cutbacks.”

Three-month copper on the London Metal Exchange fell 0.8 percent to $5,158.50 a tonne by 0740 GMT, having earlier struck its weakest since Oct. 8 at $5,145.

“Copper has been holding up, mainly due to a lack of activity I think... all pressures are downside for the moment,” said a trader in Hong Kong. “With oil continuing its slide, it looks like it could break lower.”

Shanghai Futures Exchange copper slipped 0.5 percent to close at 38,910 yuan a tonne, while aluminium fell as much as 2.6 percent to a record low of 10,765 yuan amid a glut of metal.

Oil prices fell after data from an industry group showed a larger-than-expected build in U.S. crude inventories last week, fanning worries over global oversupply.

Japan’s annual export growth slowed for a third straight month in September in a worrying sign that overseas sales continued to drag on growth last quarter and adding to fears of a recession.

The global world refined copper market showed an 8,000 tonnes surplus in July, compared with a 16,000 tonnes deficit in June, the International Copper Study Group said.

For the first seven months of the year, the market was in surplus of 8,000 tonnes compared with a deficit of 563,000 tonnes in the same period a year earlier.

The global nickel market recorded a surplus of 7,700 tonnes in August, down from a revised surplus of 9,700 tonnes a month earlier, the International Nickel Study Group said.


Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

$1 = 6.3441 Chinese yuan Additional reporting by Manolo Serapio Jr. in Manila; Editing by Richard Pullin and Biju Dwarakanath

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