London copper prices ticked up on Friday as the U.S. dollar pulled back from a three-month high, but the metal traded in a tight range amid doubts over the global economic recovery.
Three-month copper on the London Metal Exchange (LME) CMCU3 was up 0.6% at $9,374.50 a tonne by 0714 GMT, having dropped 1.4% in the previous session.
The most-traded August copper contract on the Shanghai Futures Exchange SCFcv1 finished daytime trading 0.1% lower at 68,920 yuan ($10,622.20) a tonne but was still on course for a weekly gain.
The rapid spread of the highly-contagious Delta variant of COVID-19 in some emerging markets has raised concerns that the global economic rebound might be derailed, dampening expectations for metals demand.
A possible monetary policy easing in China did not help sentiment in Shanghai because it was viewed as a sign of weakness in the world’s top metals consumer.
“This created a risk-off tone across markets, with copper the lightning rod for these concerns,” said ANZ senior commodity strategist Daniel Hynes.
FUNDAMENTALS
* China’s factory gate prices rose at a slightly slower pace in June, in line with expectations, while consumer inflation also eased.
* A weaker dollar, which pulled back from a three-month high hit on Wednesday, makes dollar-priced metals cheaper to holders of other currencies. USD/
* Shanghai nickel SNIcv1 was the day’s best performer, rising 2.6% to 139,910 yuan a tonne. LME nickel CMNI3 advanced 1.8% to $18,665.
* China’s domestic refined nickel inventories and Shanghai nickel stocks and warehouse receipts are at historic lows while LME inventories continued their decline, Huatai Futures analysts said in a note.
* LME aluminium CMAL3 rose 0.8% to $2,462.50 a tonne, while LME zinc CMZN3 gained 0.6% to $2,949.50.
* In Shanghai, aluminium SAFcv1 climbed 0.3% to 18,875 yuan a tonne, zinc SZNcv1 added 0.6% to 22,360 yuan, tin SSNcv1 jumped 1.4% to 219,300 yuan and lead SPBcv1 dropped 0.8% to 15,725 yuan.
Source: Reuters (Reporting by Enrico Dela Cruz in Manila Editing by Uttaresh.V and David Goodman)