Copper falls as the Fed weakens, weakening China data

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Copper prices fell on Wednesday on speculation of a bigger rate hike in the United States after unscrupulous remarks by Federal Reserve officials and concerns over the recent weak economic readings of top metal consumer China.


* The benchmark three-month copper price on the London Metal Exchange (LME) fell 0.4% to $ 9,332 per tonne, according to 0158 GMT, after reaching a one-week high of $ 9,434 on Tuesday.

* The most active June copper contract on the Shanghai Futures Exchange stood at 71,670 yuan ($ 10,622.81).

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* Fed Chair Jerome Powell promised on Tuesday that the US Federal Reserve would set interest rates as high as necessary to beat rising inflation, which he said posed a threat to the economy.

* The dollar rose 0.1% against its rivals, making greenback-aligned metals less expensive for buyers using other currencies.

* In April, new Chinese home prices fell for the first time in months since December, with official data showing that many cities have been hit by severe COVID-19 lockdowns.

* Mainland China reported 1,305 new coronavirus cases on May 17, compared to 1,100 new cases a day earlier.

* Monday’s data showed that China’s economic activity in April cooled sharply as the expansion of lockdowns had a profound effect on consumption, industrial production and employment.

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* U.S. retail sales rose 0.9% in April, while industrial production accelerated 1.1% last month amid continued demand for motor vehicles and other products.

Peru, the world’s second-largest copper producer, risks losing billions of dollars in mining investment if the government fails to quell protests that hurt industry and damage production, analysts and executives say.

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Market news

* Global equity markets rallied on Tuesday and Treasury yields rose, as strong US retail sales in April suggested boosting economic growth, as China’s lockdowns eased to contain the Kovid-19 epidemic.

Data / Events (GMT)

0600 UK CPI YY April

0900 EU HICP Final April

1230 U.S. Housing Start Number April


Three months LME copper

The most active is ShFE copper

Three months LME aluminum

The most active is ShFE aluminum

Three months LME Zinc

The most active is ShFE Zinc

Three month LME lead

The most active ShFE lead

LME nickel for three months

The most active is ShFE nickel

Three-month-old LME tin

Most Active ShFE Tin ($ 1 = 6.7468 Chinese Yuan Renminbi) (Report by Brijesh Patel in Bangalore; Edited by Rashmi Ich)

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