Copper fell more than 2%, on the way for the worst month since May 2023
The price of copper fell more than 2% on Wednesday, on its path to register the largest monthly decline since May 2023 with a weak data background from leading metals of Chinese consumers and trade uncertainty.
Benchmark Copper Hg1! In the London Metal Exchange (LME) dropped 2.5% to $ 9,206 per metric ton on the official ring. Prices are on the track for a decline of more than 5% in April.
Comex Copper Contract (HGC3) dropped 5.8% to $ 4.59 per lb.
Data on Wednesday shows that the activity of the Chinese factory was contracted at the fastest speed in 16 months in April, maintaining a life call for further stimulus.
“Copper is currently detained by macroeconomic uncertainty,” said SP Angel Analyst John Meyer.
“While Trump’s tariff threatens to create a mini recession in the West, we feel that new stimulus in China and most Asia will continue to keep producers continue to grow and encourage growth.”
Considering financial markets is a lack of progress in reducing US-China trade conflicts.
Although there are claims from US officials that the conversation is ongoing, China has denied active discussions. US Finance Minister Scott Besent said on Tuesday that it would be clear for Beijing that China’s tariff was not sustainable for the second largest economy in the world.
Data due on Wednesday is likely to show that the US economy is likely to be stopped or even contracted in the first quarter.
The dollar strengthens Dxy, making metals with more expensive prices for buyers using other currencies.
Maintaining the floor below the price of copper is a major decline in inventory (Cu-SGH) in a warehouse monitored by the Shanghai Futures Exchange (SHFE), sliding 23.5% from last Friday to the lowest since January 17 at 89,307 tons. Inventory fell almost a third last week.
The decline was driven by copper which was diverted to the US due to strict memo inventory and the threat of tariffs on US imports.
“The lack of memo to China is the main problem, with a large copper concentrate deficit that causes Chinese smelters to reduce capacity,” Meyer said.
In another metal, Aluminum Ali1! down 1.4% to $ 2,430 per ton, Seng Znc1! Lost 0.6% to $ 2,634.50, Lead Lead1! down 0.6% at $ 1,965, tin Ftin1! down 0.5% to $ 31,775 and Nickel Nickel1! Single around $ 15,550. All towards a monthly decline.
Source: Reuters
