Monday, October 18

Shanghai copper slips on China power squeeze worries


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Copper prices fell on Wednesday in Shanghai, as investors reduced risk exposure amid uncertainty caused by a power curtailment and ahead of a major holiday in China.

The most-traded November copper contract on the Shanghai Futures Exchange fell 0.9% to 68,600 yuan ($10,609.00) a tonne at 0300 GMT, while three-month copper on the London Metal Exchange dipped 0.1% to $9,264 a tonne.

Power restrictions in China have hurt supplies of some metals in recent months, but electricity curbs recently spread to more downstream sectors and dampened manufacturing, hurting the demand for metals.

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Meanwhile, a stronger dollar also made greenback-priced metals more expensive and less appealing to holders of other currencies.

China is going on a week-long holiday starting Oct. 1, with investors squaring positions ahead of the break to reduce exposure in a volatile market environment.

FUNDAMENTALS

* LME aluminum fell 1.2% to $2,909 a tonne, nickel declined 0.6% to $18,450 a tonne and tin was down 0.8% to $35,510 a tonne.

* ShFE aluminum rose 0.8% to 22,800 yuan tonne, nickel fell 0.7% to 141,220 yuan a tonne, lead declined 0.8% to 14,395 yuan a tonne while tin rose 1.3% to 273,130 yuan a tonne.

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MARKETS NEWS

* Asian shares lost ground, tracking declines on Wall Street as investors fretted over economic uncertainties that caused a spike in US benchmark bond yields and pushed the dollar to a more than 10-month high.

DATA/EVENTS (GMT)

0900 EU Consumer Confid. Final Sept

1545 Federal Reserve Chairman Jerome Powell, ECB President

Christine Lagarde, Bank of Japan Governor Haruhiko

Kuroda and the Bank of England Governor Andrew Bailey

speak at the ECB Forum on Central Banking

($1 = 6.4662 Chinese yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Ramakrishnan M.)



financialpost.com

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