LIVE FUTURES REPORT 05/09: LME copper, aluminium prices inch higher on dollar dip; nickel slide continues

Copper prices on the London Metal Exchange climbed 1% by the close of trading on Wednesday September 5, supported by a marginal retreat in the US dollar index amid continued price dips in the three-month lead and nickel prices.

Despite more than 100,000 tonnes of material freshly canceled since August 20 and on-warrant material down over 38% in the same period, three-month copper prices struggled to build significant momentum going into September.  That said, over the January-July period this year, demand for the red metal from major end-user sectors in China – the largest consumer of copper globally – has dwindled. Of note, power grid investment, which accounts for 52% of copper demand, has fallen 16.6% on a yearly basis, while a softening in the Chinese property sector, which accounts for 8% of copper demand, added further pressure.   “After a sharp sell-off yesterday in the base metals group, we are seeing some light buying settling in, with copper and aluminum setting the pace. There is continued...

Published

Hassan Butt

September 05, 2018

17:55 GMT

London