June 15, 2018 / 7:25 AM / 9 months ago

METALS-Copper set for biggest weekly loss since late-April on China growth concerns

(Updates prices)

By Naveen Thukral

SINGAPORE, June 15 (Reuters) - London copper prices lost ground for a second session on Friday, with the market set for its biggest weekly decline since late April on concerns over slowing growth in top consumer China.

Three-month copper on the London Metal Exchange was down 0.5 percent at $7,144.50 a tonne, as of 0709 GMT, while the most-traded copper contract on the Shanghai Futures Exchange closed 0.3 percent lower at 53,660 yuan ($8,364.90) a tonne.

For the week, LME copper dropped 2.2 percent, the biggest weekly loss since the week ending April 27. The Shanghai contract is down 0.87 percent, the most since early May.

CHINESE GROWTH: China’s industrial output, investment and retail sales all grew less than expected, offsetting upbeat trade data and suggesting further weakness ahead if Beijing sustains its crackdown on factory pollution and local government spending.

“The weaker-than-expected economic data from China weighed on the base metals,” ANZ said in a note. “Sentiment wasn’t helped by the strength in the U.S. dollar.”

GREENBACK: The dollar index gained about 0.2 percent to a two-week high of 94.973, after rallying more than 1 percent on Thursday. Stronger dollar makes greenback priced commodities expensive for buyers holding other currencies.

CRACKDOWN: China’s economy is finally starting to cool under the weight of a multi-year crackdown on riskier lending that is pushing up borrowing costs for companies and consumers, with data on Thursday pointing to a broad slowdown in activity in May.

CHINA METALS OUTPUT: While slower Chinese growth suggested lower demand, China’s output of 10 non-ferrous metals including copper, aluminium, lead, zinc and nickel rose 4.3 percent in May from a year earlier to 4.55 million tonnes. Aluminium production was up 1.5 percent at 2.79 million tonnes.

TRADE TENSIONS: U.S. President Trump has made up his mind to impose “pretty significant” tariffs on Chinese goods, an administration official said on Thursday, as Beijing warned that it was ready to respond if Washington chose to ratchet up trade tensions.

HIGHER STAKE: Anglo American said on Thursday it had agreed that Japan’s Mitsubishi Corp should raise its stake in the Quellaveco copper project in Peru by 21.9 percent for $600 million, taking its holding to 40 percent.


Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS ($1 = 6.4149 Chinese yuan)

Reporting by Naveen Thukral, Editing by Richard Pullin and Sherry Jacob-Phillips

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