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Copper falls to its lowest level in 2 weeks: US$8,803 a ton due to weak Chinese purchases

Copper falls to its lowest level in 2 weeks: US$8,803 a ton due to weak Chinese purchases

The prices of copper They fell to their lowest level in more than two weeks on Monday as the market focused on weak demand from China, the metal’s main consumer, while a weaker dollar helped limit losses.

As reported by the Reuters agency, the reference copper on the London Metal Exchange (LME) rose 0.1% to US $ 8,803 a tonne at 1004 GMT, after having touched US $ 8,752.50, its minimum since the 5th of April.

Hopes for stronger copper demand in China after the removal of COVID-19 restrictions have so far proved in vain as activity in the manufacturing sector grows more slowly than expected.

“The euphoria over the reopening of China has faded. This is not a surprise, as from the beginning we thought that this recovery would be driven by services,” said Carsten Menke, an analyst at Julius Baer, ​​adding that an overstock of manufactured goods was also weighing on demand.

Weak demand in China can be seen in the Yangshan copper premium, which has more than halved, to $23 a ton, since March 17.

Copper: short-term supply concern

Elsewhere, traders are focused on large holdings of warrants and spot contracts for LME lead, which has fueled near-term supply concerns and created a strong premium for spot metal over gold. contract for three months.

The premium reached US$35.25 per ton on Friday, its highest level since early January. Later it traded at US$32.50 a ton. Three-month lead was down 1% at US$2,140.

Industrial metals found some support in the dollar, which has been weighed down by perceptions that the US Federal Reserve will raise interest rates less aggressively than expected.

The weakening of the US currency makes the dollar price of metals cheaper for buyers of other currencies.

Among other base metals, aluminum was down 1.1% at $2,371 a tonne, zinc was down 1.1% at $2,690, tin was up 0.2% at $26,650 and nickel was down 0.5. % to $24,350.

Source: Larepublica

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