Mumbai, 8 Apr (Commoditiescontrol): Copper prices demonstrated a stark divergence on Monday, with London markets experiencing losses while Shanghai copper surged to an all-time peak. This split underscores the varying market dynamics and investor sentiment across regions.
On the London Metal Exchange (LME), three-month copper decreased by 0.6% to $9,273.50 per metric ton by 7 AM IST. This decline follows a 5.2% increase the previous week. Meanwhile, the most actively traded May copper contract on the Shanghai Futures Exchange (SHFE) jumped 2.1% to reach a record high of 75,170 yuan ($10,394.94) per ton, catching up to London's gains after a holiday break.
This contrasting performance is attributed to shifting expectations surrounding interest rate cuts by the U.S. Federal Reserve. Last Thursday, a softer dollar and hopes of rate cuts propelled London copper to a 14-month high. However, Friday's robust jobs report revealed that the U.S. economy added more jobs than anticipated last month. This suggests that the Fed might not rush to cut rates in the near future, leading to the fall in London copper prices.
The dollar remained firm but sluggish in Asian trade on Monday, as investors anticipate the release of U.S. inflation data.
Other base metals also exhibited mixed results on the LME. Aluminum dipped 0.4% to $2,440, lead decreased by 0.6% to $2,110, nickel fell 1.3% to $17,565, tin lost 0.2% to $28,750, and zinc decreased by 1.9% to $2,588.
In contrast, the Shanghai Futures Exchange saw gains in most base metals. Aluminum climbed 1.4% to 20,155 yuan per ton, zinc increased 2.2% to 21,730 yuan, nickel rose 1.6% to 135,870 yuan, tin advanced 2.6% to 233,850 yuan, and lead gained 1.7% to 16,725 yuan.
(By Commoditiescontrol Bureau: 09820130172)
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