Base metals lost ground late last week, following Friday’s US job report, where  non-farm payroll numbers came in at a much higher than expected 195,000, exceeding expectations of 165,000.
Recent LME Copper lows are expected to hold for the time being, as a period of overdue consolidation sets in and trading conditions remain reasonably quiet. In China many companies are starting to experience a cash crunch and struggle to pay bills, so as a consequence are being very careful with purchases.
While USD LME prices are on the slide, the Australian Dollar is continuing to lose ground against the USD which is taking the downward pressure off prices in Australian Dollar terms.
**** Smoother Waters Ahead For Copper Price –INTL ****
By Francesca Freeman @
1247 GMT [Dow Jones] Copper prices should consolidate at current levels, as market volatility eases following Friday’s sharp tumble, says INTL FCStone analyst Edward Meir. “We expect the recent lows to hold for the time being, as a period of overdue consolidation sets in,” he says. LME three-month copper fell 2.3% Friday as investors worried that an upbeat US jobs report would pave the way for the Fed to scale back its stimulus efforts.

**** Window For Copper Price Rally Narrowing –UBS ****
By Francesca Freeman @
1036 GMT [Dow Jones] The window for a rally in copper prices is narrowing as the demand outlook from top buyer China dims, says UBS. The bank had called for a copper price rebound as Chinese consumers begin restocking the metal. “First, the People’s Bank of China’s limits on liquidity provision mean China’s credit impulse will slow. Second, the recent fall in the renminbi suggests capital is no longer flowing into China,” it says. “Third, the lack of inflation in the system, and a palpable lack of confidence in the broader economy, means that we have not seen the typical pro cyclical investment push from housing developers and others.”

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