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METALS-London copper set for first monthly fall in four
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METALS-London copper set for first monthly fall in four
Jun 28, 2024 12:53 AM

(Updates prices)

June 28 (Reuters) - Copper prices in London firmed on

Friday, but were on track for their first monthly decline since

February amid patchy economic growth in top consumer China and

higher inventories.

Three-month copper on the London Metal Exchange was

up 1% at $9,608 per metric ton, as of 0711 GMT. The contract has

fallen 4.4% in June and is set for a sixth straight weekly loss,

if current trend holds.

After advancing to a record high of $11,104.50 on May 20,

copper prices have fallen 14%, partly on sluggish economic data

from China and uncertainty over U.S. interest rates.

"Markets have shifted their view to the reality of the

fundamentals, and the reality is that demand is weak, especially

in China. Meanwhile, if we look to ex-China, the health of

manufacturing remains clouded, U.S. is performing better, but

Europe remains in manufacturing recession," said StoneX analyst

Natalie Scott-Gray.

"I think we will see copper average around $9,500 per ton

for the year, but prices will likely go above $10,500 by the

year-end, when I suspect we have the first U.S. rate cut."

Copper inventories in warehouses monitored by

the Shanghai Futures Exchange were at 322,910 tons last week,

compared with about 30,000 tons in January, reflecting the

abundant supply in China.

The most-traded August copper contract on the Shanghai

Futures Exchange rose 0.6% to 78,370 yuan ($10,784.07),

but was set to post its worst month since July 2022.

In the broader market, the dollar was headed for a monthly

gain, making the greenback-priced metals more expensive to

holders of other currencies.

LME aluminium gained 1% to $2,516.50 a ton, nickel

edged 0.8% higher to $17,240, zinc rose 1.9% to

$2,985, lead advanced 1.2% to $2,207, and tin

climbed 2.4% to $32,960.

SHFE aluminium rose 0.3% to 20,320 yuan a ton,

nickel eased 0.2% to 134,760 yuan, lead was up

0.9% at 19,440 yuan, while zinc advanced 1.9% to 24,665

yuan and tin firmed 2.9% at 274,340 yuan.

For the top stories in metals and other news, click

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($1 = 7.2672 Chinese yuan)

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