Mumbai, 23 Jul (Commoditiescontrol): Prices of copper and other base metals climbed in London on Tuesday following recent declines, though the gains were limited by ongoing concerns about demand from China.
As of 0154 GMT, three-month copper on the London Metal Exchange (LME) was up 0.4% at $9,250.50 per metric ton. This followed a session where the contract had hit its lowest level in over three months. Meanwhile, the most-traded September copper contract on the Shanghai Futures Exchange (SHFE) slid 0.7% to 75,690 yuan ($10,406.41) per ton.
The market reacted to last week's report of weaker-than-expected second-quarter economic growth in China, raising concerns about the demand for metals from the world's top consumer. This news led to a significant sell-off in the market.
On Monday, China surprised the markets by cutting major short- and long-term interest rates, its first such broad move since August of the previous year. However, this rate cut did little to alleviate concerns about demand. According to ANZ analysts, the market was also disappointed by the lack of additional stimulus from last week’s plenum.
Other base metals on the LME also saw gains. Aluminium rose 1.1% to $2,326 per ton, lead added 0.5% to $2,093.50, zinc increased 0.6% to $2,743, tin climbed 1% to $30,200, and nickel was up 0.3% at $16,235.
Conversely, on the SHFE, aluminium dropped 0.7% to 19,420 yuan per ton, nickel dipped 0.2% to 128,770 yuan, lead slid 0.7% to 19,160 yuan, tin fell 2.4% to 251,980 yuan, and zinc eased 0.3% to 23,355 yuan.
The mixed performance highlights the ongoing uncertainty in the market, particularly regarding the demand outlook from China. As the world's largest consumer of metals, China's economic health remains a critical factor influencing global metal prices. Investors are cautiously monitoring further economic data and potential policy responses to gauge future demand trends.
(By Commoditiescontrol Bureau: 09820130172)
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