LONDON (MarketWatch) – London Metal Exchange (LME) copper weakened on Thursday as worries about China’s demand for the largest consumer of metals led to profit taking, but the decline was limited due to the expected slowdown in the Fed’s rate hike , To suppress the dollar weakness.
London time on September 7 17:00 (Beijing time on September 8 00:00), LME three-month copper fell to 6,898.5 US dollars per ton, the contract closed at $ 6,901 on Wednesday. Copper has hit a three-year high of $ 6,970 this week and has risen nearly 25% so far this year.
Liberty analyst Richard Knights said: “The dollar constitutes a major support. China’s demand is good, but overestimated. Look at the cement of these non-trading raw material data, demand growth is not high.”
“One factor is that Chinese regulators encourage wealth management products to invest in commodity futures.”
China Securities Regulatory Commission Vice Chairman Fang Xinghai June 17 has pointed out that at present, commercial banks, insurance companies, pension funds and other futures markets to participate in some policy restrictions, to continue to actively promote the relevant departments to promote the relevant policy restrictions, Under the premise of research to promote commercial banks, insurance companies and other financial institutions in the orderly use of futures market for asset allocation.
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When the dollar weakens, dollar-denominated goods are usually boosted, as the weaker dollar will make commodity prices relatively affordable for investors holding other non-dollar currencies.
US dollar against the euro today to expand the decline, after the European Central Bank to maintain an exceptionally loose monetary policy stance, and to increase the debt reserve the door.
China’s copper demand accounts for about half of the global demand for copper, China is expected this year, about 23 million tons of copper demand.
China’s proposed 2018 end of the year after the ban on some of the scrap metal news, the market in July for the copper market optimism surge.
“Despite the fact that the details are still blurry, it is understood that scrap metal refers to ‘waste seven’ metals, including waste wires, waste motor motors and bulk waste hardware,” ANZ analysts said.
“China has imported about 3.3 million tonnes of scrap copper in 2016. We believe that most of this is a waste seven, but these copper are low in copper, and China’s long-term refined copper demand remains strong.”
China’s refined copper imports rose 12.83% to 283,468 tonnes in July, but the total refined copper imports fell by 21.52% to 1,827,011 tonnes in January-July, according to data released by the General Administration of Customs of the People’s Republic of China last month.
LME copper stocks continue to decline, but also support the price. Thursday’s data show that LME copper stocks fell to 210,725 tons, since the beginning of May fell more than four percent.
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Three-month aluminum closed up 0.1% at $ 2,107 a tonne.
Three-month zinc closed up 1.1% at $ 3,129 a tonne.
Three-month lead fell slightly to $ 2,340 from $ 2,341 a tonne.
Three-month tin fell 0.2% to $ 20,750 a tonne.
Three-month nickel was down 0.1% at $ 12,150 per tonne.
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