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London copper eases from recent hikes as demand threat lingers

London copper eases from recent hikes as demand threat lingers

SINGAPORE: London copper prices fell on Thursday as investors paused to reassess the price level after two sessions of gains, while demand outlook for the metal remained foggy.

Three-month copper on the London Metal Exchange (LME) eased 0.5 per cent to $4,826.50 a tonne by 0257 GMT, having climbed 4.9 per cent in just two sessions on hopes that the United States would issue a historic $2 trillion stimulus package to curb the economic fallout from the coronavirus outbreak.

“Investors are taking a breather here to digest all the stimulus packages that have been announced everywhere. They might need to reassess where we are heading next,” said Anna Stablum, a commodity broker at Marex Spectron.

LME nickel fell 0.7 per cent to $11,210 a tonne, zinc dipped 0.2 per cent to $1,832.50 a tonne, tin dropped 2.7 per cent to $13,915 a tonne.


ZINC & LEAD: The global zinc market flipped to a surplus of 35,6000 tonnes in January, while lead market deficit shrank to 3,100 tonnes in January, industry data showed.

CODELCO: Top copper miner Codelco said it would suspend construction of some projects including the Chuquicamata mine in a bid to halt the virus from spreading.

CHINA: Shops and local authorities in China are slashing prices and handing out millions of dollars worth of discount coupons to kick start the economy there.

PRICES: The most-traded copper contract on the Shanghai Futures Exchange (ShFE) rose 0.5 per cent to 39,100 yuan ($5,503.79) a tonne, tracking gains in London overnight, and aluminium rose 1.2 per cent to 11,665 yuan a tonne.

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