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METALS-Copper around 3-1/2-month low on demand concerns, risk-off sentiment
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METALS-Copper around 3-1/2-month low on demand concerns, risk-off sentiment
Jul 24, 2024 12:39 AM

(Recasts and updates prices)

BEIJING, July 24 (Reuters) - Copper prices slipped again

on Wednesday, and were hovering around a three-and-a-half month

low hit in the previous session, amid demand concerns in top

consumer China and a risk-off sentiment.

Three-month copper on the London Metal Exchange was

down 0.1% at $9,161 per metric ton by 0656 GMT, its lowest since

April 3.

The most-traded September copper contract on the Shanghai

Futures Exchange lost 0.5% to 74,950 yuan ($10,302.55)

a ton, also its weakest since April 3.

Lower-than-expected second quarter economic growth and a

lack of targeted stimulus to boost China's ailing property

sector from last week's policy meeting sparked sell-off in

metals.

Broadly, investors switched off risk appetite as they assess

a possible U.S. administration led by Donald Trump might set

more trade tariffs, impacting demand and the global economy,

traders said.

However, the falling prices encouraged more demand in the

spot market, which will lead to a gradual decline in copper

inventories in China, said Shanghai Metals Market in a note.

The yangshan premium , an indicator of import

demand, rose to a three-month high of $18 per ton on Tuesday.

Miner Freeport-McMoran ( FCX ) remains bullish on copper

demand, helped by massive investment in the power grid,

renewable generation technology, infrastructure and

transportation.

LME lead gained 0.3% to $2,066 a ton, zinc

added 0.5% at $2,702, tin jumped 2.3% to $30,105, nickel

ticked up 0.2% to $16,060, while aluminium was

little changed at $2,296.50.

Citi delivered large amounts of lead to LME-approved

warehouses in Singapore on Monday for profitable financial

deals, three sources said, taking total LME stocks of the

battery metal to their highest since early May.

SHFE aluminium dipped 0.2% to 19,325 yuan a ton,

nickel rose 0.1% to 128,400 yuan, lead added

0.3% to 19,155 yuan, tin moved up 0.8% to 252,690 yuan

and zinc declined 0.9% to 23,040 yuan.

For the top stories in metals and other news, click

or

($1 = 7.2749 Chinese yuan renminbi)

(Reporting by Siyi Liu and Mei Mei Chu; Editing by Subhranshu

Sahu and Varun H K)

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