down on concerns about Chinese demand

The CMCU3 benchmark on the London Metal Exchange fell 0.3%.

Benchmark CMCU3 copper on the London Metal Exchange (LME) fell 0.3% to $9,543 a tonne after touching $9,508, its lowest since April 18. It has fallen 14% since speculative buying drove prices to a record high of $11,104.50 in May.

The dollar index rose 0.3% after hitting a fresh 38-year high against the yen. A stronger U.S. currency makes commodities priced in the currency more expensive for buyers using other currencies. Spot gold fell 0.8%.

Signs of weak demand in China weighed further on copper, which is used in power and construction.

“Chinese copper wire or wire producers increased production slightly in June from April-May levels, but the increase was not significant. That means demand has not increased much despite copper prices falling from recent highs,” said Dan Smith, head of research at Amalgamated Metals Trading.

Copper stocks in LME-registered warehouses continued to rise, with daily data showing 2,700 tonnes of arrivals lifting stocks to 175,475 tonnes, the highest in more than six months.

The discount for the LME cash contract in the three-month MCU0-3 contract was $141 on Wednesday after hitting a record high of $148.4 on Tuesday.

However, tight copper mine supply could create upside for the metal in the second half of this year, BofA Securities said in a note.

The base metals rally that began in January has faded, repeating a pattern seen over the past two years: investors tend to push prices higher in Q1 and Q2, but as physical demand is slow to catch up, industrial metals then retreat, giving up some of the gains.

“That said, the fundamental backdrop this year is much stronger, so we believe the downside is ultimately limited,” BofA added.

LME zinc CMZN3 rose 2.4% to $2,940, aluminium CMAL3 rose 0.3% to $2,503, while lead CMPB3 fell 0.8% to $2,192, tin CMSN3 lost 0.7% to $31,955 and nickel CMNI3 was down 0.5% at $17,075.

Source: https://kinhtedothi.vn/gia-kim-loai-dong-ngay-27-6-giam-do-lo-ngai-ve-nhu-cau-cua-trung-quoc.html