Signs of slowing industrial activity in top consumer China have weighed on copper prices on the London Metal Exchange (LME) in recent months. Prices have fallen 20% since hitting a record high above $11,100 in May.
LME benchmark CMCU3 copper fell 1.7% to $8,905 a tonne from $8,714 a tonne earlier, its lowest since March 13.
Last week's weak US monthly jobs report and a series of weak earnings reports from major tech companies further undermined sentiment in commodities and equity markets.
“All of these markets are interconnected,” said Liberum analyst Tom Price. “The metals and energy markets are very sensitive to macro themes. Equity investors actually link some of their portfolios to the commodities markets either directly or through indexes.”
European shares fell to multi-month lows while Japanese shares at one point surpassed their 1987 "Black Monday" losses as investors fled the equity market on fears of a US recession .
Growing expectations of deeper interest rate cuts by the US Federal Reserve to support growth have weighed on the US currency, which should ultimately help support demand for USD-denominated metals.
In the short term, however, the copper market is worried about rising inventories in LME-approved warehouses, which have risen more than 140% since mid-May to a three-year high of 251,350 tonnes.
Most of the copper delivered to LME warehouses in Asia originates from China, according to industry sources.
Elsewhere, CMPB3 lead hit a nine-month low of $1,926.50 a tonne. Weak demand and high inventories in the LME system pushed the metal down 4.4% to $1,934.
Abundant inventories have been the reason for the continuous decline in the cash metal in the three-month contract CMPB0-3 since March.
Among other metals, aluminium CMAL3 fell 0.4% to $2,254 a tonne, zinc CMZN3 fell 0.6% to $2,636, tin CMSN3 fell 2.6% to $29,400 and nickel CMNI3 was little changed at $16,265.
Source: https://kinhtedothi.vn/gia-kim-loai-dong-ngay-6-8-xuong-muc-thap-nhat-trong-4-thang-ruoi.html
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