Copper set for weekly decline on China stimulus disappointment
Updates prices
By Mai Nguyen
Oct 25 (Reuters) -Copper prices eased on Friday and were on track to end the week lower after stimulus measures from top consumer China failed to ease demand worries.
Three-month copper on the London Metal Exchange (LME) CMCU3 edged down 0.1% to $9,502.50 per metric ton by 0808 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 closed down 0.2% at 76,390 yuan ($10,723.51) a ton.
LME copper was on track for its fourth straight week of decline. SHFE copper posted its third straight weekly fall.
China has announced a slew of supportive measures to boost its economic growth, but the scale of support has so far failed to allay demand worries.
LME aluminium CMAL3 dropped 1.2% to $2,618 a ton, retreating from a near five-month high hit in the previous session on raw material supply worries.
LME zinc CMZN3 shed 3.4% to $3,066, easing from a 20-month high scaled on Thursday amid tightness in near-term supplies.
"It is not the first time that metals have got carried away with supply disruption or ore shortage stories by ignoring demand slowdown. But in most such times, prices have started multi-month bearish trend," said Sandeep Daga, a director at Metal Intelligence Centre.
"Bulls are refraining from adding new bets despite Chinese stimulus, while bearish stakes are at multi-year low. A large part of panic buying from bears is over. I expect prices to slide," Daga said, adding that LME copper could fall to $9,200 a ton.
LME nickel CMNI3 eased 0.7% to $16,185, lead CMPB3 edged down 0.9% to $2,055.50 and tin CMSN3 fell 0.6% to $30,960.
SHFE aluminium SAFcv1 fell 1.4% to 20,760 yuan a ton, zinc SZNcv1 declined 0.8% to 25,135 yuan, tin SSNcv1 decreased 0.2% to 254,290 yuan, lead SPBcv1 edged down 0.3% to 16,710 yuan and nickel SNIcv1 was down 0.1% at 125,870 yuan.
($1 = 7.1236 yuan)
Reporting by Mai Nguyen in Hanoi; Editing by Sumana Nandy, Sonia Cheema and Subhranshu Sahu
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