LME copper declines on lack of Chinese buyers
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Copper prices on the London Metal Exchange edged down on Thursday as Chinese buyers were sidelined expecting lower prices and a firm dollar weighed on sentiment. ''We just don't see any reason for copper to rally from here. A lot of the negative news has been factored in so unless you get a further big supply disruption we see it drifting,'' analyst Mr Max Layton at Macquarie Bank told Reuters. Copper for delivery in three months was down $10 at $8,420/8,435 at 0940 GMT, extending a loss of 1.1 per cent in the previous session, as a stronger dollar made industrial metals more expensive for holders of other currencies.
Inventories down
So far this year copper has gained 26 per cent on supply disruptions and tight inventory levels. Stocks in LME warehouses stand at 110,100 tonnes, down 44 per cent this year. Inventories could fall further, sparking a rally in copper with prices targeting $10,000 per tonne, analyst Mr Allan Trench at metals consultancy CRU said.
''The key thing is that copper stocks would have to fall another 40,000 to 50,000 tonnes from where they are now-that would be the real trigger,'' he said, adding it was likely as the market was structurally in deficit. In other metals, tin was quoted at $24,200/24,400, within striking distance of its record high of $24,600 a tonne hit on April 24. On Wednesday it was last at $24,000/24,005. Aluminium fell $18 to $2,906/2,911, zinc shed $10 to $2,240/2,260, while lead gained $10 to $2,430/2,450.
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Source : Business Line |
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