Mumbai, 19 Jun (Commoditiescontrol): Copper prices saw an uptick on Wednesday, driven by supply concerns and a softer U.S. dollar, though gains were tempered by demand worries from China, the largest consumer. Three-month copper on the London Metal Exchange (LME) rose 0.5% to $9,719 per metric ton. Meanwhile, the most-traded July copper contract on the Shanghai Futures Exchange (SHFE) edged up 0.2% to 78,680 yuan ($10,843.74) per ton.
Anglo American announced that copper output at its Los Bronces mine in Chile is expected to decline by nearly a third next year due to a maintenance shutdown at its processing plant. This anticipated reduction in supply has contributed to the current price rally. However, record high prices have dampened copper consumption in China, exacerbated by recent disappointing economic data.
ANZ analysts noted a fall in China's spot demand, triggering rare large-scale exports and pushing LME stockpiles to their highest levels since January. This increase in stockpiles highlights ongoing demand concerns.
The U.S. dollar remained steady on Wednesday, recovering from losses after softer-than-expected U.S. retail sales data reinforced expectations of imminent Federal Reserve rate cuts. A weaker dollar makes dollar-priced commodities like copper more affordable for buyers using other currencies.
Other base metals also experienced gains. LME nickel added 0.1% to $17,310 per ton, aluminum climbed 0.6% to $2,502.50, zinc advanced 0.8% to $2,859.50, and lead rose 1.7% to $2,229, while tin dipped slightly by 0.1% to $32,110.
On the SHFE, aluminum increased 0.7% to 20,515 yuan, zinc gained 1.2% to 23,745 yuan, tin moved up 0.2% to 267,890 yuan, and lead rose 2.5% to 19,365 yuan. However, nickel declined 1.1% to 134,130 yuan per ton.
As the market continues to grapple with supply issues and fluctuating demand, particularly from China, copper prices are likely to remain volatile.
(By Commoditiescontrol Bureau: 09820130172)
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