Copper prices fell on Monday from their highest levels in nearly seven months, as subdued physical demand and a global economic downtrend weighed on prices.
Three-month copper on the London Metal Exchange CMCU3 dipped 0.1 percent to $9,173.50 a ton, having hit its highest since June 16, 2022 of $9,257 a ton in the previous session.
The most-traded March copper contract on the Shanghai Futures Exchange closed 0.3 percent lower at 68,640 yuan ($10,231.03) a ton.
“China re-opening, supportive measures for the property market, and weakening US dollar have been driving the market sentiment in recent past,” said ANZ analyst Soni Kumari.
“Nevertheless, we are yet to see positive developments in the spot market … Copper physical premium is still falling, which signals a weak demand. Therefore, a short-term price correction is in the cards,” Kumari added.
China’s factory activity in December shrank at the sharpest pace in nearly three years as COVID-19 infections swept through production lines across the country.
Yangshan copper premium was at $32.50 a ton on Friday, down from $152.50 last October.
Supply disruption in Peru helped limit the price drop, while the dollar hit a seven-month low and low copper inventories in the LME and SHFE warehouses – at 186,343 tons combined on Friday, or just over two days worth of global consumption. — Reuters
