SHANGHAI, Jun 30 (SMM) - LME copper remained near a 16-month low on Wednesday, as investors were weighing the risk that a rapid interest rate hike would reduce global economic growth and metal demand.
Metals prices fell along with the stock market, and the presidents of many central banks became more hawkish when they talked about taking action to curb inflation, which had been at a high level for several years.
At 17:00 on June 28, London time (00:00 on June 29, Beijing time), LME indicator three-month copper rose by 0.42% to $8,401.00/mt, close to last week's low of $8,122.50/mt, far below the record high of $10,845/mt in March.
LME nickel futures rose after the UK sanctioned Vladimir Potanin, who holds 36% of the Norilsk Nickel shares, the largest producer.
The weak economic data of Europe and the US did not stop the central bank officers from intensifying hawkish remarks.
Speculative investors hold a bearish outlook on copper prices.
Analysts at Standard Chartered said in a report that output disruption, supply mismatch and relatively insufficient stock in the exchange could not support metal prices.
A survey shows that China's factory activity in June is expected to expand for the first time in four months.
Two people directly involved in the price negotiations said on Wednesday that some Japanese aluminium buyers have reached an agreement with at least two global producers, agreeing that the aluminium premiums in July-September will be $148/mt, down by 14% QoQ.