Copper prices recover on LME
Written by Millennium on June 20, 2019
BUUMBA CHIMBULU writes
COPPER prices recovered on Monday, boosted by a mine strike and weak Chinese output, Barclays bank Zambia has said.
Benchmark copper on the London Metal Exchange (LME) gained 0.5 percent to US$5,848 a tonne in closing open outcry trading after earlier sinking to an intraday low of US$5,776.
The bank however indicated in its daily market update that other industrial metals were on Monday pressured by nervousness about the damage to growth and demand from the United States-China trade dispute.
“Copper prices fell on Friday after weak manufacturing and investment data from top consumer China reinforced expectations of damage to growth and demand prospects from the protracted U.S.-China trade war,” said the bank.
Benchmark copper on LME fell 0.6 percent to US$5,822 a tonne in closing open-outcry trading.
Prices of the metal used widely in the power and construction industries had dropped as low as US$5,740 this month to its weakest in five months.
Meanwhile, oil prices fell more than one percent on Monday after more poor Chinese economic figures fanned fears of lower worldwide oil demand.
Prices had fallen around 20 percent since a 2019 high reached in April, in part due to concerns about the U.S.-China trade war and disappointing economic data.
Brent crude futures lost US$1.07 to settle at US$60.94 a barrel, a 1.73 percent loss. U.S. West Texas Intermediate crude futures fell 58 cents to settle at US$51.93 a barrel, a 1.10 percent loss.