Mumbai, 6 Sep (Commoditiescontrol): Most nonferrous metals declined on Friday, as caution surrounding the upcoming U.S. elections and potential economic policies weighed on demand prospects for commodities.
On the London Metal Exchange (LME), three-month copper fell 0.1% to $9,081 per metric ton. In contrast, the most-traded October copper contract on the Shanghai Futures Exchange (SHFE) rose 0.7% to 72,420 yuan ($10,218.13) per ton. LME copper is on track for a second consecutive weekly decline, down 1.5% so far, with SHFE copper also heading for a weekly loss.
Analysts at Citi predict copper prices could reach $9,500 per ton within the next three months, with aluminum at $2,500 and zinc at $2,800. However, they caution that the potential for higher or new trade tariffs under a possible Donald Trump presidency could dampen a demand recovery. "We maintain our cautious outlook on the base metals complex until after the U.S. election when we expect more clarity on U.S. and China policies and manufacturing sentiment, as Federal Reserve rate cuts progress," Citi analysts noted.
Investors are expected to take time to analyze data before significantly rebuilding positions in metals as a proxy for global growth recovery, the analysts added. Despite this, ongoing tightness in the copper concentrate market offered some support to metal prices. According to a study by Chile's state-run copper commission Cochilco, the shortage of mined copper is expected to persist until 2025.
Other metals on the LME also saw declines: nickel fell 0.4% to $16,010 per ton, zinc dropped 0.7% to $2,781, lead eased 0.4% to $1,988, and tin slipped 0.6% to $30,595. Aluminum remained flat at $2,378.50 per ton.
On the SHFE, aluminum fell 0.5% to 19,250 yuan per ton, nickel dropped 1% to 123,750 yuan, zinc declined 2.4% to 22,615 yuan, lead lost 1.5% to 16,835 yuan, and tin remained nearly unchanged at 248,920 yuan.
(By Commoditiescontrol Bureau: 09820130172)
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