Copper drops on uncertainty over Chinese offtake
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Copper prices on the London Metal Exchange fell on Wednesday as the dollar strengthened against other currencies dampening sentiment and as uncertainty over Chinese consumption cast a pall over the market. Copper for delivery in three months fell $70, or 0.8 per cent, to $8,450/8,470 by 1049 GMT, after gaining 1.3 per cent on Tuesday.
China exports
China's exports will probably grow just 10 per cent this year due to weakening overseas demand, slowing from 25.7 per cent in 2007, a Government research body said on Monday. Concerns over tight supplies continued to give prices a floor with copper prices up some 27 per cent so far this year. Copper in LME-registered warehouses stand at 109,025 tonnes, having almost halved since the start of this year and only enough for less than three days' of global consumption.
In other metals, aluminium eased $43 to $2,930/2,935 per tonne, while lead was down $50 at $2,505/2,525. Nickel was down $600 at $28,300/28,400. The metal is expected to remain sluggish in the near future given news that leading Chinese stainless steel makers are cutting production and slashing spot sales in this month. Tin was up $100 to $24,200/24,400, nearing its all time high of $24,600 recorded on April 24.
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Source : Business Line |
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