Thursday, December 1

London copper eases as firm dollar, China data dampen appeal


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Copper prices in London fell on Thursday as a firmer US dollar made greenback-priced metals more expensive for overseas buyers while data signaled that factory prices in top consumer China slumped, fueling concerns over economic slowdown.

Three-month copper on the London Metal Exchange fell 0.5% to $8,063 a tonne by 0218 GMT, while lead dropped 0.8% to $2,061.50 a tonne and tin declined 0.4% to $19,745 a tonne.

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The dollar held on to gains marked in the previous session ahead of key US inflation data due later in the day.

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China’s factory gate prices for October dropped for the first time since December 2020, and consumer inflation moderated, underlining faltering domestic demand as strict COVID-19 curbs, a property slump and global recession risks hammered the economy.

Copper is often used as a gauge of global economic health and China accounts for about half of the global consumption of the metal.

COVID-19 outbreaks in China also weighed on risk sentiment.

Lifting concerns of a slowdown, millions of residents of China’s southern manufacturing hub of Guangzhou were told on Wednesday to get tested for COVID-19, as infections topped 2,000 for two days running in the city’s worst outbreak so far.

The most-traded December copper contract on the Shanghai Futures Exchange advanced 0.5% to 66,520 yuan ($9,151.19) a tonne, aluminum fell 0.1% to 18,500 yuan a tonne, zinc declined 0.7% to 23,550 yuan a tonne and tin dropped 1.4% to 168,170 yuan a tonne.

SHFE nickel jumped 3.1% to 198,450 yuan a tonne, and lead rose 1.5% to 15,490 yuan a tonne.

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DATA/EVENTS (GMT)

1330 US CPI MM, SA Oct

1330 US CPI YY, NSA Oct

1330 US Initial Jobless Clm Weekly

($1 = 7.2690 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Sherry Jacob-Phillips)



financialpost.com

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