Metals Update: Copper Slips on China Stimulus Disappointment

Published 25-10-2024, 10:42 am

Key Highlights – October 25, 2024

- Copper Prices Dip on Demand Worries

- LME Copper: +0.3% to $9,536/ton by 0344 GMT but on track for a fourth straight weekly decline.

- SHFE Copper: +0.1% to 76,600 yuan/ton, also set for a weekly loss.

- China’s stimulus measures failed to ease demand concerns, keeping bearish sentiment intact.

- Other LME Metals Performance
- Aluminium: -1.7% to $2,605.50/ton after retreating from a five-month high on Thursday due to supply concerns.
- Zinc: -1.4% to $3,130/ton, though still set for a weekly gain after hitting a 20-month high on supply tightness.
- Nickel: -0.4% to $16,230/ton.
- Lead: -0.2% at $2,070/ton.
- Tin: -0.4% to $31,000/ton.
---
SHFE Metals Performance
- Aluminium: -1.2% to 20,785 yuan/ton.
- Zinc: -0.4% to 25,245 yuan/ton.
- Tin: -0.4% to 253,750 yuan/ton.
- Nickel: +0.3% to 126,310 yuan/ton.
- Lead: +0.2% at 16,790 yuan/ton.

---

Market Commentary

- Sandeep Daga from the Metal Intelligence Centre highlighted that markets often overreact to supply disruptions without factoring in demand slowdowns, leading to potential multi-month bearish trends.

- He noted that copper prices could slide further, with LME copper possibly falling to $9,200/ton.

- Bearish bets remain low, while bullish investors remain cautious, even with Chinese stimulus in play.
---
Summary

- Copper: Set for another weekly decline, weighed down by disappointing Chinese stimulus.

- Aluminium and Zinc: Pulled back after supply-driven gains, with zinc still logging a weekly rise.

- Outlook: Weak demand sentiment could lead to further price corrections, with market focus shifting to fundamental demand trends beyond supply concerns.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.