Mumbai, 31 May (Commoditiescontrol): London Metal Exchange (LME) copper prices rose on Friday, setting the stage for a moderate monthly gain despite pressures from profit-taking and weak physical demand in China, the top consumer.
Three-month copper on the LME rebounded by 0.6% to $10,191 per metric ton by 0208 GMT. Despite this increase, the metal has lost 1.2% this week due to accelerated profit-taking. After reaching record highs on May 20 driven by speculative buying, copper prices saw a pullback due to profit-taking and concerns over potential U.S. interest rate hikes. Overall, the contract has registered a 2% monthly gain.
In China, the most-traded July copper contract on the Shanghai Futures Exchange dropped by 1.6% to 82,490 yuan ($11,396.16) per ton. Although copper is anticipated to benefit from a growing supply deficit and rising demand, the recent price rally has dampened actual consumption.
China's manufacturing sector showed unexpected weakness in May. An official factory survey revealed that the Purchasing Managers' Index (PMI) fell to 49.5 from 50.4 in April, indicating contraction and missing the median forecast of 50.4 from a Reuters poll.
Other base metals also had varied performances. LME aluminum increased by 0.3% to $2,711.50 per ton, nickel added 0.9% to $20,240, zinc remained steady at $3,070, tin climbed 0.7% to $33,330, and lead rose by 0.5% to $2,287.50. Conversely, on the SHFE, aluminum dropped by 1.3% to 21,465 yuan per ton, tin decreased by 1.4% to 274,840 yuan, nickel fell by 1.8% to 150,920 yuan, zinc shed 1.2% to 24,800 yuan, and lead edged down by 0.3% to 18,830 yuan.
These mixed movements reflect the complex interplay of global demand, supply constraints, and economic indicators, particularly from China, which continue to shape the metals market.
(By Commoditiescontrol Bureau: 09820130172)
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