The LME three-month copper price recently traded up a marginal $5 per tonne - or 0.08% - at $5,744 per tonne compared with Thursday’s close, failing to be supported by inventory movements.
A net outflow of 6,700 tonnes of copper was recorded at LME-approved sheds around the globe on Friday morning, while a significant 21,225 tonnes of the material was freshly canceled at the same time. While turnover for the red metal topped the LME base metals complex, its some 2,700 lots this morning is lackluster in comparison to earlier in the week.
Though drawdowns presumably come in response to the announced force majeure
at Antofagasta’s Antucoya copper project in Chile
and MMG’s Las Bambas mine in Peru
, market participants are of the view that copper continues to react to macroeconomic developments over physical market fundamentals this week, following the release of disappointing gross domestic product (GDP) data from China this morning.
“LME copper is down around 1% on the week, reflecting a weaker risk-taking appetite in China and a weaker yuan, largely driven by renewed fears over trade relations between the United States and China after a political disagreement over Hong Kong. China reacted badly to the measures passed unanimously by the US House of Representatives earlier this week,” Fastmarkets analyst Boris Mikanikrezai said.
- The dollar index, which gauges the strength of the US currency against a basket of foreign currencies, was up by 0.1% at 97.60 this morning, but is failing to exert a significant hold on LME base metals prices, which are trading mixed in the morning session.
- In Chinese data on Friday, the country’s economy grew by 6.0% year on year in the third quarter of this year, slowing from the 6.2% growth recorded in the second quarter, according to the National Bureau of Statistics.
- The European Council will convene on Friday for its final day of economic discussions on Europe’s long-term budget strategy while the UK government, which agreed a new Brexit deal with the European Union on Thursday, attempts to win support in UK parliament.
- In addition, Bank of England governor Mark Carney is speaking.