Copper heads for monthly decline as China stimulus disappoints
Updates prices
By Mai Nguyen
Oct 31 (Reuters) -Copper prices on Thursday were set for a monthly fall, weighed down by disappointment over the scale and lack of details on the stimulus measures announced so far by top consumer China.
Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.2% to $9,553 per metric ton by 0740 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 closed down 0.2% at 76,540 yuan ($10,748.79) a ton.
On a monthly basis, LME copper was down 3% and SHFE copper was 2.9% lower.
Prices surged in late September after a U.S.interest rate cut and as China unveiled a series of economic support programmes.
However, the scale of the stimulus measures and lack of details have disappointed market participants. Moreover, the uncertainty surrounding the U.S. presidential election, due on Nov. 5, has kept some traders and investors on the sidelines.
China's top legislative body will meet from Nov. 4-8, where market participants hope Beijing will announce more measures for its economy.
Lending some support to metals prices on Thursday, data showed that manufacturing activity in China expanded in October, for the first time in six months, indicating the stimulus measures are helping the battered economy turn a corner.
"It's good news for sure, but (prices) are being over-shadowed by government policy," said a trader.
LME aluminium CMAL3 rose 0.4% to $2,626.50, zinc CMZN3 edged up 0.6% at $3,103.50, tin CMSN3 climbed 1.2% to $31,335, while lead CMPB3 eased 0.1% to $2,002.50 and nickel CMNI3 increased 0.1% to $15,830.
SHFE aluminium SAFcv1 fell 0.5% to 20,710 yuan a ton, nickel SNIcv1 declined 0.4% to 123,840 yuan, zinc SZNcv1 edged up 0.8% at 25,275 yuan, tin SSNcv1 was nearly flat at 255,460 yuan, while lead SPBcv1 eased 0.1% to 16,620 yuan.
($1 = 7.1208 yuan)
For the top stories in metals and other news, click TOP/MTL or MET/L
For related news and prices, click:
LME price overview RING=
COMEX copper futures 0#HG:
All metals news MTL
All commodities news C
Foreign exchange rates FX=
SPEED GUIDES LME/INDEX
Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu and Savio D'Souza
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
