Home / Commodities / Commodity News / Copper wallows near multi-month lows on slowdown fears

Copper wallows near multi-month lows on slowdown fears

London copper languished near a more than seven-month low on Friday, as fears of a global economic slowdown dampened demand, keeping the metal on track for its sixth consecutive weekly decline.

Benchmark three-month copper on the London Metal Exchange (LME) was flat at $9,095 a tonne, as of 0703 GMT, after falling on Thursday to its lowest since early October at $8,938. The contract is down 3.4% so far this week.

The most-active June copper contract on the Shanghai Futures Exchange ended daytime trading down 0.5% at 71,060 yuan ($10,445.39).

Copper, which is used in power and construction sectors and widely seen as a barometer of global economic growth, has fallen more than 16% from March’s record high of $10,845, when investors had feared the war in Ukraine would disrupt its supply from Russia.

“Metal prices have collapsed back to pre-conflict levels (some to 2021 levels) as a strong U.S. dollar, Chinese lockdowns and weakening Chinese demand are working to undo most gains,” Fitch Solutions said in a note.

“We expect some more price weakening in Q2 2022 before a stabilization in the second half of the year, as Chinese lockdowns roll on.”

Shanghai is aiming to reach “zero-COVID” at the community level in the next few days and will then start to steadily ease traffic restrictions and open shops, the city’s deputy mayor, Wu Qing, said.

Major central banks, including the U.S. Federal Reserve, have been raising interest rates to tackle soaring inflation, stoking economic slowdown concerns.

DOLLAR: The U.S. dollar steadied near a fresh 20-year high scaled on Thursday as investors flocked to the safety of the greenback.

FED: Calling stable prices the “bedrock” of the economy, Fed Chair Jerome Powell said the U.S. central bank’s battle to control inflation would “include some pain” as the impact of higher interest rates is felt, but that the worse outcome would be for prices to continue speeding ahead.

RUSSIA: Nornickel, the world’s largest producer of palladium and refined nickel, has become the first Russian company to be granted permission by a government commission to keep its listing abroad, for one year for now.

PRICES: LME aluminum climbed 1.5% to $2,782 a tonne, zinc gained 0.3% to $3,540.50, nickel slipped 0.9% to $27,555, lead was down 0.5% at $2,082 and tin eased 0.1% to $33,730.

Shanghai aluminum added 0.3%, zinc was down 0.9%, nickel slipped 0.4%, lead fell 0.8% and tin dipped 0.9%. ($1 = 6.8030 Chinese yuan renminbi)
Source: Reuters (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich)

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping