Copper slips on weak European factory data
<p style="text-align: center;"><img title="1597284252431092.png" alt="9.png" src="/ueditor/php/upload/image/20200813/1597284252431092.png"/></p><p> Copper prices edged lower on Wednesday, continuing a gradual slide from two-year highs reached last month as lacklustre European factory data reinforced concerns that demand will remain weak and the market oversupplied.<br/><br/>Benchmark copper on the London Metal Exchange (LME) was down 0.1% at $6,382 a tonne at 1048 GMT.<br/><br/>Prices crashed to $4,371 in March as the coronavirus closed factories worldwide but rebounded to $6,633 on July 13 as consumption in China, the biggest market, revived and traders worried the virus would disrupt mine production.</p><p><br/></p><p>But with much of the world moving into recession and mine output holding up, some analysts think prices are too high.<br/><br/>"Copper is way ahead of the fundamentals," said Eugen Weinberg, head of commodities research at Commerzbank, adding that weak demand and oversupply should push prices down 10-15% from current levels.<br/><br/>EURO FACTORIES: Euro zone industrial production rose in June but less than expected.<br/><br/>BRITAIN: Britain's economy shrank by a record 20.4% in the second quarter.<br/><br/>U.S.: The White House and Congress are deadlocked on a coronavirus relief plan to support economic growth.<br/><br/>CHINA: Chinese copper demand has been strong, with imports rising to record levels. Data on Tuesday showed new bank lending fell more than expected in July.<br/><br/>SPREAD: Cash copper flipped to a small discount against the three-month contract on the LME for the first time in a month, pointing to an increase in nearby supply.<br/><br/>STOCKS: Stocks in LME-registered warehouses at 114,575 tonnes are the lowest in more than a year.<br/><br/>OTHER METALS: LME aluminium was up 0.1% at $1,788.50 a tonne, zinc fell 0.8% to $2,390, nickel slipped 1.3% to $14,165, lead was flat at $1,960.50 and tin was up 0.1% at $17,710.<br/></p>
13 Aug,2020
