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Copper falls on weak Chinese trade data that unsettles demand

Copper falls on weak Chinese trade data that unsettles demand

Copper falls on weak Chinese trade data that unsettles demand

Copper prices fell on Wednesday, after weak Chinese trade data stoked concerns about demand from the world’s top metals consumer, overshadowing the easing of COVID-19 restrictions in the country.

Three-month copper on the London Metal Exchange (LME) was down 0.9% at $8.345 a tonne at 1050 GMT, after rising 0.4% on Tuesday.

Data showing Chinese exports and imports in November contracted at their steepest pace in at least two-and-a-half years weighed on the market.

Copper on the LME has risen around 12% since early November, largely on hopes of a recovery in demand in China due to the easing of coronavirus restrictions and measures to support the beleaguered real estate sector. .

From our point of view, we do not expect a sudden rebound in the Chinese real estate market in the short term.” said Edward Gardner of Capital Economics. “We think perhaps this rally was a bit overdone and today’s price decline is quite justified, coupled with the fact that the global manufacturing and services PMIs have been in contraction territory since November, particularly the new orders component.”.

The most traded January copper contract on the Shanghai Futures Exchange lost 0.7% to 65,440 yuan ($9,378.18) a tonne. China’s announcement of the most sweeping changes to its strict COVID-19 regime since the pandemic began three years ago cushioned the losses.

Also supporting was the slight weakening of the dollar index, which lowers the prices of raw materials priced in the US currency for buyers using other currencies.

Among other base metals, aluminum on the LME was down 1% at US$2,484.50 a tonne; Nickel was down 1.2% at $28,925; zinc was down 1.2% at US$3,118; lead lost 0.4% to US$2,212; and tin fell 3.8% to US$23,860.

With information from Reuters

Source: Elcomercio

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