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Copper slips as investors worry about fundamentals-18th China(Guangzhou)Int¡¯l Non-Ferrous Metal£¨Copper£©Exhibition
3/8/2017 Copper exhibition -non-ferrous metals expo |
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Reuters reported that Copper prices fell to a more than one week low on Monday on concerns the metal had extended too much but supply disruptions at the world''s two biggest copper mines provided some support. Three month copper on the London Metal Exchange closed 1 percent lower at USD 5,858 tonne, its lowest since Feb. 24.
Oxford Economics head of commodities research, Mr Dan Smith said that "The super enthusiastic reception to Donald Trump and a wider positive attitude for risky assets has gone a bit too far. Things need to be put in that context of markets being overbought.¡±
Copper has risen about 15% since Trump was elected US President in November after he pledged to increase spending on infrastructure which would benefit commodities.
In supply news, Indonesia will not back down from new rules requiring Freeport-McMoran to divest a majority stake in its local unit, its mines minister said late last week in a dispute over rights to the world''s second-biggest copper mine which has frozen exports.
Meanwhile, Chile expects economic activity growth to be hit by around one percentage point in February because of a strike at world no.1 copper mine Escondida, as copper output slides 12% year on year.
JP Morgan analyst Natasha Kaneva said that despite this supply reduction, the copper cathode market will record a surplus. He said that "Global demand remains healthy but production is responding positively to higher prices in all metals, keeping pace with demand and maintaining well supplied markets.¡±
China, which is copper''s biggest consumer, cut its growth target this year as the world''s second-largest economy pushes through painful reforms to address a rapid build-up in debt, and erects a "firewall" against financial risks.
-18th China(Guangzhou)Int¡¯l
Non-Ferrous
Metal£¨Copper£©Exhibition
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