(Adds broker comment, updates prices)
June 26 (Reuters) - Copper drifted lower on Friday and was
on track for its steepest weekly drop in more than three months
as a selloff in tech equities spilled over into the metal.
Benchmark three-month copper on the London Metal
Exchange was down 0.3% at $13,236 a metric ton as of 0920 GMT.
The metal, considered a bellwether for the health of the
global economy, was on course to end the week down 2.6%, which
would mark its biggest weekly decline since the week ended March
20.
Global equities slipped after Apple ( AAPL ) price hikes
fuelled wider concerns over the inflationary impact of spending
by tech giants.
Sucden Financial senior broker Robert Montefusco said the
selloff in copper looked a little overdone. "We're looking for
it to rebound again, to chase back up to $13,500 but there's no
impetus to really do it just yet - that's the trouble," he said.
"No one is seeing any real physical demand."
Tight copper inventories were lending some support. Shanghai
Futures Exchange copper stocks fell 5.7% from last
week to 135,732 tons, the lowest since December, while LME
copper stocks trickled down to 336,475 tons, the
lowest since March 18.
Even so, the cash LME contract was trading at a $40 per ton
discount to the three-month forward , indicating no
near-term supply tightness.
Aluminium climbed 0.4% to $3,175.50 a ton after a
cargo ship was hit in the Strait of Hormuz on Thursday, reviving
concerns about the tentative peace deal in the Middle East.
The metal touched $3,110 on Wednesday, the lowest since
February 25 before the U.S.-Iran conflict began. It was heading
for a 6.4% weekly drop, which would also be its worst week since
March.
"With energy prices coming down, the costs for producing
aluminium should be coming down," Montefusco said, adding that
there could be buying around the $3,000-$3,100 mark.
Zinc edged up 0.1% to $3,437, lead was flat
at $1,912, nickel nudged up 0.4% to $16,750 and tin
climbed 0.1% to $50,405.
(Reporting by Tom Daly; additional reporting by Solomon Cefai;
Editing by Rashmi Aich and Joyjeet Das)