Friday, December 3

Copper hits 7-week low as dollar firms, inventories jump


Article content

London copper on Friday dropped to its lowest in seven weeks as prices came under pressure after the dollar strengthened on stalled US stimulus talks and amid a jump in inventories.

Three-month copper on the London Metal Exchange was down 1.1% at $6,319 a tonne by 0311 GMT, having fallen to as low as $6,303 earlier in the session, its lowest since Aug. 14.

Copper stocks in LME-approved warehouseswere last at 163,125 tonnes, more than double the inventories level just a week earlier.

Meanwhile, stalled US bipartisan stimulus talks overnight pushed the US dollar higher, making greenback-priced metals less appealing to holders of other currencies.

FUNDAMENTALS

* Prices of aluminum for US consumers in the transport, construction and packaging industries are sliding because the market is expecting exemptions for producers in the United Arab Emirates and Bahrain.

* LME aluminum edged down 0.1% to $1,737 a tonne and nickel declined 0.5% to $14,275 a tonne.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Asian markets were little changed, as a US stimulus deal remained out of reach and investors waited on fresh US employment data for a read on the economic toll from the coronavirus pandemic.

DATA/EVENTS (GMT)

0900 EU HICP Flash YY Sept

0900 EU HICP-X F&E Flash YY Sept

1230 US Non-Farm Payrolls Sept

1230 US Unemployment Rate Sept

1230 US Average Earnings YY Sept

1400 US Factor Orders MM Aug

1400 US U Mich Sentiment Final Sept

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminum

Most active ShFE aluminum

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS (Reporting by Mai Nguyen, Editing by Sherry Jacob-Phillips)



financialpost.com