Copper and some other base metals on the LME slipped on Friday morning as the dollar held on to gains buoyed by rising U.S. treasury yields which gathered momentum, hitting1.75 per cent for the first time in 14 years, making dollar-priced metals more expensive for holders of other currencies.
Three-month copper on the London Metal Exchange was down 1.7 per cent to $8,898 a tonne while the most-traded May copper contract on the Shanghai Futures Exchange lost 1.6 to 66,020 yuan ($10,146.93) a tonne.
The morning trade also was bearish for other base metals on the LME as tin went down 0.5 per cent to $25,705 a tonne, aluminium declined 0.7 per cent to $2,201.50 a tonne while ShFE aluminium lost 1.6 per cent to 17,415 yuan a tonne.
However, commodity analysts noted that any drop in metals at the moment is a chance to buy ‘now’ as the market demand for metals is on the rise due to an increase in global industrial activities. This, they said, promises a bullish trend for metals and related commodities because money will flow out to emerging markets.
On the other hand, China’s aluminium imports, according to customs data, jumped 150.7 per cent in the first two months of 2021 compared to volumes recorded a year earlier while overseas metals booked at favourable prices are expected to flow into the world’s largest aluminium market, creating a positive outlook for the metal.
Frontpage September 7, 2021