Mumbai, 5 Aug (Commoditiescontrol): Copper prices in London saw a modest uptick on Monday, as previous declines created buying opportunities, though gains were limited by ongoing concerns about the global economic outlook.
As of 0135 GMT, three-month copper on the London Metal Exchange (LME) rose 0.2% to $9,074 per metric ton. However, the most-traded September copper contract on the Shanghai Futures Exchange (SHFE) dropped 1.3% to 73,000 yuan ($10,195.53) per ton.
Traders noted that the bullish momentum driven by strong demand from China and production cuts by smelters has faded. Despite this, some investors are buying the dip, maintaining long-term optimism about copper, a key industrial metal essential for various sectors, including renewable energy and electronics.
Over the past four weeks, LME copper prices have fallen by 8%. Analysts at ANZ predict that metal prices may soon reach a bottom, as the current low prices could prompt a supply response from producers.
In the broader economic context, U.S. job growth in July slowed more than anticipated, with the unemployment rate increasing to 4.3%. This raised fears of a weakening labor market, adding to concerns about a potential recession. The disappointing jobs data, coupled with weak manufacturing activity in China, has contributed to a global selloff in risk assets.
However, the jobs report has also fueled expectations that the U.S. Federal Reserve might implement deeper interest rate cuts starting in September. Such a move could potentially stimulate industrial activity and boost demand for metals.
Other metals on the LME also saw slight increases: aluminum added 0.1% to $2,266 per ton, zinc rose 0.6% to $2,668, tin increased 0.4% to $30,300, and nickel climbed 0.4% to $16,340 per ton.
In contrast, SHFE metals largely declined, with aluminum down 1.6% to 18,895 yuan per ton, zinc falling 1.6% to 22,485 yuan, tin dipping 0.2% to 247,800 yuan, and nickel slightly lower by 0.2% to 130,140 yuan per ton.
(By Commoditiescontrol Bureau: 09820130172)
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