METALS-Copper declines on demand outlook amid poor Chinese data

Reuters · 05/11/2023 02:55
METALS-Copper declines on demand outlook amid poor Chinese data

Updates prices, adds quotes

- Copper prices fell on Thursday, as subdued trade data from top consumer China darkened the economic outlook for the country, weighing on the metal's demand prospects.

Three-month copper on the London Metal Exchange CMCU3 eased 0.1% to $8,463 a tonne by 0625 GMT, aluminium CMAL3 rose 0.1% to $2,270 a tonne, CMNI3 fell 0.3% to $22,470 a tonne and tin CMSN3 was up 0.4% at $25,945 a tonne.

Data on Wednesday showed Chinese imports contracted sharply in April, while exports rose at a slower pace, reinforcing signs of feeble domestic demand despite the lifting of COVID curbs.

"Weak imports from China sparked this week's selloff. ... This comes as stockpiles climb in Asian (LME) warehouses, a sign there is little interest from buyers for arriving material," said ANZ analysts in a .

LME lead CMPB3 fell 0.3% to $2,129.50 a tonne and zinc CMZN3 lost 0.3% to $2,617 a tonne.

London metals prices were cushioned by a weaker dollar on slowing U.S. inflation. A softer dollar makes greenback-priced metals cheaper to holders of other currencies.

"U.S. consumer price index data was supportive overall... but Chinese data is still poor," said a metals trader.

The Yangshan premium SMM-CUYP-CN fell to $21.50 a tonne on Wednesday, its lowest since March 10, indicating tepid appetite to import copper into China.

The most-traded June copper contract on the Shanghai Futures Exchange SCFcv1 declined 1.4% to 66,270 yuan ($9,587.53) a tonne, SNIcv1 dropped 4.6% to 170,960 yuan a tonne, aluminium SAFcv1 fell 0.8% to 18,160 yuan a tonne.

SHFE zinc SZNcv1 decreased 1.4% to 21,110 yuan a tonne, tin SSNcv1 edged up 0.2% at 207,490 yuan a tonne while lead SPBcv1 was almost unchanged at 15,290 yuan a tonne.

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($1 = 6.9121 yuan)

(Reporting by Mai Nguyen in Hanoi; Editing by Rashmi Aich and Uttaresh Venkateshwaran)

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