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Copper hit four week low on weak China demand, tin rallies-2017 China(Guangzhou)Int’l Non-Ferrous Metal（Copper）Exhibition
8/11/2016 有色金属展-铜材展-non-ferrous metals expo |
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Reuters reported that copper fell to its lowest in four weeks, weighed down by seasonally weak demand in top metals consumer China and concern that Beijing may not cut rates soon.
However, tin shot up to an 18-month peak on worries about potential shortages due to smelter shutdowns in China. Three month copper on the London Metal Exchange closed down 0.7 percent at $4,779 a tonne, having hit a low of $4,761, its weakest since July 12.
Analyst Mr Daniel Briesemann at Commerzbank in Frankfurt said that "You''ll have to wait a few more weeks, or maybe one or two months, until the seasonally low demand from China is over and demand picks up."
Chinese copper demand is usually weaker during the summer.
Copper prices broke support around the 100-day moving average and may now fall back to the 200-day moving average at $4,737.
Chinese producer price deflation moderated further, adding to views that the central bank may be in no hurry to cut interest rates.
ANZ said that a downwards trend in China''s copper imports which fell sharply in July, could well continue.
It said that "A combination of high inventories and weak seasonal demand should see import demand remain tepid over the next couple of months."
Mr Briesemann, however, was convinced that copper prices would rebound in the fourth quarter.
He said that "I''m convinced that the copper market is tighter than many other copper market participants believe. I''m still comfortable with my price target of $5,200 for end of the year."
LME tin ended up 0.7 percent at $18,425 after touching a peak of $18,470, the strongest since February 2015.
Traders said that a string of environmental inspections at smelters in China since last month has already curbed local tin output, and could lead to higher imports of refined metal.
LME nickel ended up 0.1 percent at $10,780 a tonne.
-2017 China(Guangzhou)Int’l Non-Ferrous Metal（Copper）Exhibition
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