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METALS-Copper hits two-week low as Chinese stimulus disappoints
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METALS-Copper hits two-week low as Chinese stimulus disappoints
Oct 8, 2024 9:58 AM

(Updates official prices)

By Julian Luk

London Oct 8 (Reuters) - Copper prices fell on Tuesday

to their lowest in two weeks after top metal consumer China

failed to convince investors on how its stimulus package would

drive the economy to its growth target.

Three-month copper on the London Metal Exchange

(LME) touched $9,700 a metric ton for the lowest level since

Sept. 24. It was last down 1.6% at $9,774 a ton in official

rings.

Half-day trading volumes of LME copper surged to a one-week

high after China returned from public holidays.

"There had been overshoot in copper prices as the market

priced in China's stimulus package as a game changer, but it now

looks hesitant," one trader said, adding that there was also an

element of profit-taking after rallies last week.

Copper prices hit a four-month high last week after China

announced its biggest stimulus package since the COVID-19

pandemic. Analysts had expected bold moves to lift a heavily

indebted property sector that has been weighing on consumer

confidence.

But a briefing on Tuesday provided little detail on the

stimulus other than a repeat of China's full confidence in

achieving its full-year growth target.

Industrial metals fell as the market worried that measures

announced so far will only help to stabilise growth but may not

be enough to support a rebound, said Ole Hansen, head of

commodity strategy at Saxo Bank.

Hong Kong's Hang Seng index dropped by 9.4% on

Tuesday for its heaviest fall since 2008, with record falls in

property stocks. The stimulus briefing also ate into gains on

blue-chip CSI 300 index.

Shares in copper miners, which sell to China, also dropped.

In other metals, LME aluminium lost 2.8% to $2,585 a

ton for its biggest decline in more than four months while

nickel fell 2.2% to $17,650 despite production

disruption at Vale's Onca Puma nickel plant and the operations

of Madagascar miner Ambatovy.

Zinc lost 2.2% to $3,106, tin fell 2.4% to

$33,100 and lead was down 2.2% at $2,102.

(Julian Luk in London

Editing by Varun H K and David Goodman)

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