July 17, 2018 / 7:23 AM / 2 years ago

METALS-London copper rebounds on low inventories, technicals

 (Updates prices)
    By Naveen Thukral
    SINGAPORE, July 17 (Reuters) - London copper futures bounced
back on Tuesday underpinned by low inventories and technical
support, but concerns of slowing growth in top metals consumer
China limited gains.
    Three-month copper on the London Metal Exchange         was
up 0.4 percent at $6,216 a tonne as of 0706 GMT and the
most-traded copper contract on the Shanghai Futures Exchange
         finished down 0.4 percent to 48,810 yuan ($7,307.21) a
    INVENTORIES: Headline stocks of copper in LME-registered
warehouses gained 1,525 tonnes to 257,200 tonnes, but were still
at their lowest since January. MCUSTX-TOTAL
    SUPPLIES: There was additional support for the copper market
stemming from expectations of output disruption.
    ESCONDIDA: "Copper held up relatively well, as the
possibility of supply disruption in Chile was back in the
headlines," ANZ said in a note. "Workers at BHP's Escondida
copper mine rejected the company's first formal wage offer. The
two parties are expected to head back to the negotiating table
later this week."             
    TECHNICALS: LME copper is poised to break a resistance at
$6,260 per tonne and rise more towards $6,370, as suggested by
its wave pattern and a retracement analysis, according to Wang
Tao, Reuters analyst for commodities and energy technicals.  
    GROWTH: China's economy expanded at a slower pace in the
second quarter as Beijing's efforts to contain debt hurt
activity, while June factory output growth weakened to a
two-year low in a worrying sign for investment and exporters as
a trade war with the United States intensified.             
    TRADE WAR: China's commerce ministry said on Monday it had
filed a complaint to the World Trade Organization (WTO)
regarding Washington's proposed tariff list on $200 billion
worth of Chinese goods on July 16.             
    INVESTORS: Copper speculators switched to a net short
position of 12,919 contracts, the Commodity Futures Trading
Commission said last week, the weakest position since December
    ALUMINIUM SUPPLY: China's aluminium producers are responding
to tighter supply conditions by boosting output, data showed.
China's June output rose by 0.8 percent to 2.83 million tonnes,
which on a daily basis was the highest since June 2017,
according to Reuters' calculations based on official data.
    ZINC: Shanghai zinc futures          finished down 2.5
percent and lead          dived 2.1 percent on worries over
Washington-Beijing trade war curbing demand. 
    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 = 6.6797 Chinese yuan renminbi)

 (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips
and Vyas Mohan)
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