Home / Metal News / Copper / Copper decline in LME is dragged down by novel coronavirus's growing epidemic and economic worries.
Copper decline in LME is dragged down by novel coronavirus's growing epidemic and economic worries.
Jul 31,2020 08:10CST
translation
Source:Mandarin Finance and Economics
The content below was translated by Tencent automatically for reference.

SMM: (LME) copper futures on the London Metal Exchange fell on Thursday as investor confidence was hit by the resurgence of the COVID-19 epidemic and more evidence of its impact on the economy.

Copper for three-month delivery fell 0.67 per cent, or $43.50, to settle at $6430.50 a tonne.

"I have a strong feeling that this V-shaped recovery is being questioned, or at least temporarily stalled," said Carsten Menke, an analyst at Julius Baer in Zurich.

The death toll of COVID-19 in Florida hit a record high for the third day in a row on Thursday, while the number of infections in Australia and India also reached record highs.

Data show that Germany, Europe's largest economy, shrank by a record 10.1% in the second quarter, while the US economy shrank at an annualised rate of 32.9% in the second quarter from the previous quarter, the biggest decline since the Great Depression.

Copper prices surged more than 50 per cent during the rebound from March lows to a two-year high of $6633 a tonne on July 13, partly because of concerns about supply conditions in Chile, the main producer.

"the copper supply disruption in Chile does not seem to be a reality," Menke said. Although they have been affected by the virus, they still seem to be in production, so the rally is fading. "

Prices are likely to fall sideways to a reasonable price of $6250 in the short term, he added.

The Shanghai Futures Exchange's main September aluminium contract hit a more than two-year high, closing 1.8 per cent higher at 14720 yuan a tonne, boosted by a stronger-than-expected recovery in China, the largest consumer.

Among other base metals, aluminum for three-month delivery fell 0.29 percent, or $5, to settle at $1720 a tonne, after hitting $1731.50, the highest since March 5.

Lead for the three-month period was flat, with a settlement price of US $1873 per tonne.

Zinc for three-month delivery fell 0.46 per cent, or $10.50, to settle at $2286.5 a tonne, hitting a six-month high of $2312.

Three-month nickel fell 1.08 per cent, or $150, to settle at $13726 a tonne;

Tin for three-month delivery fell 0.7 per cent, or $125, to settle at $17805 a tonne.

"SMM online Q & A" has come to the market, price, information if you have any questions, feel free to ask!

Scan the QR code and join the SMM metal communication group.

Quotation
performance report
macro
mining

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news