Copper prices declinec on Monday amid cautious trading ahead of key economic statistics from top consumer China later this week. While investors assessed demand prospects after the Federal Reserve cut interest rates, regaining some momentum.
After falling 1.5% the previous week, three-month copper on the London Metal Exchange (CMCU3) remained steady at $8,342.50 per metric tonne by 02:17 GMT.
The Shanghai Futures Exchange’s most traded February copper contract, SCFcv1, saw a 0.4% decrease to 67,810 yuan ($9,452.85) per metric tonne.
In addition to increasing liquidity infusions, China’s central bank shocked investors by maintaining the same interest rate on maturing medium-term policy loans.
The second-biggest economy in the world will announce its December industrial production and fourth-quarter GDP on Wednesday.
After data on Friday revealed that the United States producer prices unexpectedly dropped last month. Bets on the Federal Reserve cutting rates in March have gained traction.
The disruption at the mine-side, however, helped to support copper prices. Smelters’ rush for raw materials may cause copper prices to plummet. Which could further erode Chinese companies’ profit margins and possibly reduce their output of refined copper.
the London Metal Exchange aluminium (CMAL3) increased by 0.1% to $2,220.50 per tonne, lead (CMPB3) decreased by 0.3% to $2,085.50. Nickel (CMNI3) decreased by 1.1% to $16,165, tin (CMSN3) increased by 0.7% to $24,800, and zinc (CMZN3) increased by 0.5% to $2,526.
Lead (SPBcv1) fell 1.7% to 16,175 yuan, aluminium (SAFcv1) eased 0.4% to 18,935 yuan. Zinc (SZNcv1) lost 0.1% to 21,110 yuan, and tin (SSNcv1) increased 1.4% to 209,440 yuan.