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Copper down on concerns over slowing Chinese demand

Metal News - Published on Mon, 04 Dec 2017

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Reuters reported that copper ended November down more than 1 % on concerns over slowing demand from China, though the metal held steady into the close on the back of upbeat manufacturing data from the world’s largest metals consumer. The official Purchasing Managers’ Index showed that growth in Chinese manufacturing unexpectedly picked up this month despite a crackdown on air pollution and a cooling property market.

Mr Jens Pedersen Danske Bank analyst said that “The official PMIs came out overnight slightly higher than consensus, so the market has taken that very well. There has been some uncertainty over whether growth in China would hold up or not, so that is why the market is trading on these key figures.”

Mr Pedersen said that “We could start to see the Chinese economy showing signs of slowdown we have seen that in the housing market, and especially in construction.” He added that “That is an issue for base metals prices, because if China is moving ahead at a slower pace, there is less demand for metals.”

1. COPPER: Three-month London Metal Exchange copper closed at USD 6,762 a tonne, little changed from the previous day but down 1.2 % overall in November.

2. LME STOCKS: Copper stocks held in LME warehouses fell another 3,200 tonnes, data showed , taking them to their lowest since July 2016 at 188,525 tonnes.

3. COPPER TECHNICALS: LME copper has tested resistance at USD 6,792 after stabilising around a support zone of USD 6,713-USD 6,737 a tonne, Reuters technical analyst Wang Tao said. A break above here could spark a rise to USD 6,847.

4. STRIKES: Workers at Southern Copper Corp in Peru said they completed a ninth day of a strike on Wednesday. A union at Teck Resources’ Quebrada Blanca copper mine rejected a contract offer from the Canadian miner, increasing the likelihood of a strike.

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Posted By : Nanda Koijam on Mon, 04 Dec 2017
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