Base metals rangebound ahead of key China policy meeting, US election
Base metals traded in a tight range on Tuesday, as markets awaited a key meeting next week in China for more details on Beijing’s stimulus measures and the outcome of the U.S. presidential election next week.
Three-month copper on the London Metal Exchange (LME) CMCU3 was nearly flat at$9,543.50 per metric ton by 0734 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 eased 0.2%to 76,500 yuan ($10,711.14) a ton.
The top legislative body in China, the world’s biggest metals consumer, will meet from Nov. 4-8, but so far there has been no mention on the agenda of the highly-anticipated debt and other fiscal measures.
“Shorter-term view will be… aligned to macro such as Chinese stimulus and what kind of policies the U.S. will enact,” said a trader, adding that the market is also being risk-averse ahead of the U.S. presidential election on Nov. 5.
“Although everyone keeps talking about copper concentrate shortage next year, it still is an issue of smelter over- capacity worldwide. Demand is sluggish longer-term,” the trader said, expecting $10,500 as a potential peak price in 2025.
Copper demand has been hurt by slowing growth globally, especially in China, although some consumption sectors have been strong, such as solar and wind energy.
LME aluminium CMAL3 eased 0.1%to $2,643.50 a ton, zinc CMZN3 edged down 0.4%to $3,128, nickel CMNI3 fell 0.4%to $15,950, lead CMPB3 declined 0.5%to $2,019.50 and tin CMSN3 dropped 0.9% to $31,140.
SHFE aluminium SAFcv1 fell 0.7% to 20,790 yuan a ton, nickel SNIcv1 dropped 1.9% to 123,890yuan, lead SPBcv1 edged down 0.9%at 16,610 yuan, tin SSNcv1 declined 1.2% to 253,770yuan, while zinc SZNcv1 rose 0.4%to 25,010yuan.
Source: Reuters (Reporting by Mai Nguyen in Hanoi; Editing by Sumana Nandy and Rashmi Aich)