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Copper prices eased on Wednesday to their lowest in a month after recent weak economic data reinforced demand fears while a looming central bankers conference focuses attention on interest rates.
Three-month copper on the London Metal Exchange (LME) CMCU3 fell for a third day, slipping 0.8% to $9,178.50 a tonne by 1015 GMT after dropping 2.1% on Tuesday.
“We’re seeing a breakdown in the technicals, the growth outlook from China is not supportive and the dollar is challenging key resistance areas,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
“It’s a wait-and-see kind of market. There could be potential for changing the stance on interest rates and tapering (of monetary stimulus) next week, so it’s keeping the market nervous,” he added, referring to the annual Jackson Hole conference of central bankers.
LME copper was challenging the uptrend line stretching from the low of March 2020 at $9,230, a break of which could send prices down to the 200-day moving average at $8,820, Hansen said.
The most-traded September copper contract on the Shanghai Futures Exchange SCFcv1 closed 1.5% down at 68,720 yuan ($10,602.97) a tonne.
* Copper had rebounded during Asian trading, gaining support from news that residents near MMG’s 1208.HK Las Bambas copper mine in the Peruvian Andes have blocked a road used to transport the metal after a two-week truce.
* China’s July aluminium imports were up 6.1% from the previous month, data showed on Wednesday, hitting their highest since September 2020.
LME aluminium CMAL3 fell 1.4% to $2,564.50 a tonne.
* Yunnan Chihong Zinc & Germanium 600497.SS said late on Tuesday that one of its zinc subsidiaries had suspended production after three workers were killed in a gas leak.
* The Yangshan copper premium SMM-CUYP-CN jumped to $72 a tonne, its highest since March 3, indicating improving demand.
* LME nickel CMNI3 fell 1.1% to $18,975 a tonne, zinc CMZN3 shed 1% to $2,984, lead CMPB3 lost 1.5% to $2,287.50 and tin CMSN3 was down 0.8% at $35,520.
Source: Reuters