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Copper: Prices fall in the face of disappointing data from China

10/07/2023
Categories: Raw materials

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Copper is being weighed down by demand concerns, while disappointing inflation data in China indicate a slow economic recovery in the world's largest metal-consuming country, despite some supply problems.

Copper at three months on the London Metal Exchange was down 0.5% to $8,326 per metric ton at 0459 GMT, following a marginal weekly gain. Factory prices in China fell at the fastest rate in seven and a half years in June, while consumer inflation was the lowest since 2021.

Chile, the world's largest copper producer, saw its production fall by 14% in May compared to the previous year. Chinese refined copper production in June was estimated by the Shanghai Metals Market at 917,900 metric tons, exceeding expectations as some smelters extended maintenance

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There have been hopes for new stimulus measures from the world's second-largest economy that could support demand for industrial metal.

The most traded August copper deal on the Shanghai Futures Exchange rose 0.2% to 67,850 yuan ($9,378.02) per metric ton.

LME pewter fell 1.9% to $27,800, zinc lost 0.6% to $2,349, lead and aluminum remained unchanged at $2,052.50 and $2,145.50 per ton respectively, while nickel fell 1.1% to $20,580.

SHFE zinc fell 1.2% to 19,910 yuan, lead was little changed at 15,505 yuan, nickel fell 2.4% to 160,950 yuan, tin lost 2.1% to 229,420 yuan, while aluminum rose 0.6% to 17,960 yuan per metric ton.

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