Copper dips as China's factory growth slows

Sun Online Desk

3rd April, 2021 05:55:31 printer

Copper dips as China's factory growth slows

Copper prices fell on Thursday after data showed top consumer China's factory activity growth was weaker-than-expected in small, private and exported-oriented firms amid softer domestic demand.

Three-month copper on the London Metal Exchange fell 0.2% to $8,765.50 a tonne by 0238 GMT, while the most-traded May copper contract on the Shanghai Futures Exchange declined 0.3% to 65,440 yuan ($9,965.89) a tonne.

China's factory activity in March expanded at the slowest pace in almost a year on softer overall domestic demand, with the Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) dropping to 50.6 last month - the lowest level since April 2020.

Yangshan copper premium <SMM-CUYP-CN> was hovering at its lowest since Dec. 23, 2020 of 58.50 a tonne, indicating weakening demand for imported copper into China. Stockpiles of the metal in exchange warehouses have been rising steadily. <MCUSTX-TOTAL> <CU-STX-TOTAL>

FUNDAMENTALS

* LME zinc fell 0.7% to $2,799.50 a tonne, lead declined 0.7% to $1,961 a tonne while aluminium rose 0.3% to $2,219 a tonne.

* ShFE lead dropped 1% to 15,200 yuan a tonne, zinc was down 0.4% at 21,545 yuan a tonne while aluminium rose 0.5% to 17,265 yuan a tonne.

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* Stocks crept higher following their weakest quarter in a year, while higher Treasury yields supported the dollar, as investors parsed the details of a $2 trillion U.S. government spending plan and hoped for strong jobs data later in the week.

DATA/EVENTS (GMT)

0750 France Markit Mfg PMI March

0755 Germany Markit/BME Mfg PMI March

0800 EU Markit Mfg Final PMI March

0830 UK Markit/CIPS Mfg PMI Final March

1230 US Initial Jobless Clm Weekly

1345 US Markit Mfg PMI Final March

1400 US ISM Manufacturing PMI March

($1 = 6.5664 yuan) (Reporting by Mai Nguyen; Editing by Shailesh Kuber)

 

Source: Daily Mail


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