Copper prices lose ground in London, China
Written by Millennium on August 17, 2019
BUUMBA CHIMBULU writes
COPPER prices lost ground in London and Shanghai in early trade on Thursday, weighed down by growing fears of a global recession and weak industrial output growth in top metals consumer China.
Barclays Bank Zambia daily market update reported that prices for the red metal had continued to drop as weak Chinese data indicates a slowing demand for the commodity.
According to the report, three-month copper prices on the London Metal Exchange (LME) fell 0.2 percent to US$5,753.50 a tonne, after closing down 1.1 percent on Wednesday.
On Wednesday, the bank reported that the prices for the red metal dropped by 0.6 percent a day after registering an increase of 1.5 percent in the previous session supported by news that the United States would delay some tariffs on Chinese goods.
During the trade session, three-month copper on the London Metal Exchange was down 0.6 percent at US$5,792 a tonne.
“London copper prices dropped on Wednesday as weak Chinese data indicated slowing demand for the red metal, while concerns over supplies eased as some of Peru’s top mines had resumed exports,” said the bank.
Prices for the red metal however on Tuesday climbed after the United States said its planned to impose 10 percent tariffs on some Chinese products would be delayed, which helped ease worries about growth and demand in top consumer China.
Benchmark copper on the London Metal Exchange ended up 1.5 percent at US$5,828.5 a tonne.
“Prices of the metal, seen as a gauge of economic health, fell to $5,640 last week, their lowest since June 2017,” Barclays bank said.