“LME prices were all lower today as current weak investor sentiment over Chinese demand led the markets lower, triggering a sharp technical sell off,” Sucden Financial said in its daily report.
The three-month copper price closed down 3% after hitting a low of $6,533.50 per tonne earlier in the day.
“We are seeing a much sharper selloff today, but most of the weakness is concentrated in copper and nickel, with the rest of the group down only modestly,” Edward Meir, INTL FCStone analyst, said.
“Copper seems to be getting hit on account of a sharp rise in LME stocks [in excess of 10,000 tonnes] suggesting that more increases could be coming along over the next few days,” he added.
Nickel prices closed over $500 per tonne lower despite steel and iron ore prices in China continuing to climb higher. The...