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.
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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.
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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.
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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.