Login ID:
Password:
Partner Login
Contact Us : 7066511911

LME Copper Stays Range Bound as Investors Eye Next Cue

4 Aug 2020 9:49 am
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

Mumbai (Commodities Control) – London copper eased on Tuesday, having moved in a narrow range for weeks, as investors weighed between bullish and bearish factors following a strong rally in the past few months.

Three-month copper on the London Metal Exchange fell 0.3% to $6,473.50 a tonne by 0209 GMT. The contract moved in a tight range of less than 1% in each of the past three weeks after surging 52% in four months to a two-year high in July.

Shanghai base metals were mostly lower on Tuesday, failing to hold onto overnight gains. Nonferrous metals on the LME were mixed.

LME aluminium fell 0.5% to $1,743.50 a tonne, zinc declined 0.8% to $2,306 a tonne. ShFE aluminium rose 1% to 14,735 yuan a tonne, a 27-month high, while nickel jumped 1.6% to 111,140 yuan a tonne.

Escalating U.S.-China tensions, supply continuity from Chile, resurgence of COVID-19 cases and seasonally weaker China demand kept a lid on further rallies.

However, prices have been supported by economic recovery in some countries, a weaker dollar and hopes of further U.S. stimulus package.

The most-traded copper contract on the Shanghai Futures Exchange rose 1.3% to 51,710 yuan a tonne, tracking overnight gains in London.

The front-month ShFE copper contract was traded at a 60-yuan discount to the second-month contract, suggesting that nearby supply tightness has eased, after ShFE inventories rose to the highest since May 22 at 159,513 tonnes.

China's July excavator sales jumped over 40% year-on-year, the Shanghai Securities News reported, indicating a strong construction sector that also consumes metals. Construction machinery demand could stay solid for the rest of 2020, it said.

Nonferrous metals on the SHFE, except for zinc, cruised higher in overnight trading. Copper jumped 1.33%, aluminium surged 1.51%, nickel increased 1.52%, tin added 1.01% and lead edged up 0.19%. Zinc shed 0.45%.

Their counterparts on the LME were mixed on Monday. Copper increased 1.6%, aluminium surged 2.02%, lead advanced 0.27% and nickel added 1.06%, while zinc shed 0.13% and tin shriveled 0.14%.

Three-month LME copper is likely to move between $6,310-6,450/mt today. The September contract on ShFE is likely to trade between 51,600-52,000 yuan/mt today.



       
  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated
0.0

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  
   

Top | Post Comment  

Latest Market Commentary
JSPL Expects to Produce 19% More Steel This Year as D...
China Grants Import Quotas for Another 136,335 T of Cop...
ShFE-LME Metals Stumble; London Copper Falls on Stronge...
China Steel Sector sees Higher Demand in H2
LME Copper falls for 2nd session, Chinese demand limits...
more
Top 5 News
India 2020-21 Kharif Oilseed Sowing Up As On Sep 18,202...
Cotton Prices Steady In Karnataka amid Tight Arrivals, ...
Major Pulses Steady In Delhi Amid Cautious Trade On Gov...
Cotton Prices Steady in A.P-Telangana
Cotton Prices Steady In Maharashtra amid Weak Demand, D...
Top 5 Special Reports
USD/INR (Sep 20) Needs to Surpass Resistance at 74.2...
USD/INR (Sep 20) Needs to Surpass Resistance at 74.2...
USD/INR (Sep 20) Needs to Surpass Resistance at 74.2...
USD/INR (Sep 20) Needs to Surpass Resistance at 74.2...
Weekly: Urad, Masoor, Chana Gain Most This Week, Moong ...
Copyright © CC Commodity Info Services LLP. All rights reserved.