While the focus in Australia moves towards the G20 this weekend and whether Tony Abbott will really shirt front Vladimir Putin (we suspect he won’t) commodity markets have drifted sideways. Copper, Aluminium & Nickel have all been steady whilst the AUD/USD recovered from Fridays big drop.
On Ferrous the markets have had a terrible week with iron ore at 5 year lows and scrap markets dropping sharply.
**** DJ Copper Prices Edge Lower as China’s Demand Appears to Slow ****
By Ira Iosebashvili
Copper prices edged lower Monday, as growing warehouse stocks suggested flagging demand for the industrial metal while economic growth appears to be slowing in China.
Copper for December delivery, the most actively traded contract, was recently down 0.2% to $3.0345 a pound on the Comex division of the New York Mercantile Exchange.
Stockpiles of copper in London Metal Exchanged registered warehouses stood at 161,900 metric tons as of Nov. 7, just shy of a new five-month high. Supplies of the industrial metal, which is used in the manufacture of everything from smartphones to air conditioners, has been growing in LME warehouses since mid-July, reflecting a slowdown in the economy of China, the world’s largest copper consumer.
Expectations for continued slowing in China and little hope for a broad-based stimulus from the country’s central bank have weighed on copper prices.
Prices for the metal have stayed in a narrow range since mid-September, as investors wait try to gauge the extent of China’s slowdown.
A raft of Chinese macro-economic numbers later this week may help investors make up their minds and lend prices more direction, said Edward Meir, a strategist at INTL FC Stone, in a note to investors.
On the London Metal Exchange, nickel for delivery in three months was off 1.5% to $15,198 a metric ton.