LONDON – Copper prices hit their lowest in two months on Tuesday as stockpiles in London Metal Exchange (LME) warehouses climbed to a six-month high amid a subdued demand outlook and stronger dollar.
Three-month copper on the LME was down 0.9% at $9,583 per metric ton by 10:20 GMT, having earlier fallen as low as $9,558, its weakest since April 18, after exchange data showed a massive copper delivery of 19,175 tons to Asian locations.
Inventory at LME-approved warehouses rose to 155,850 tonnes, pointing to lackluster demand, data released showed.
“Copper has been hit the hardest by the fading hopes of a global manufacturing recovery,” Julius Baer’s Carsten Menke said according to Reuters.
Prices came under pressure from disappointing May industrial output from top consumer China and a slowdown of metals-intensive fixed asset investments, Menke added.
LME aluminium also dipped to $2,470 a ton, its lowest in nine weeks. It last traded 0.9% lower at $2,479.
“We think $2,450 is a good buying point. Aluminium’s fundamentals are not bad in the medium term,” a trader said.
China’s aluminium imports jumped 61.1% in May, thanks to inflows from Russia, which is subject to Western sanctions.
Producers also offered to sell aluminum at premiums 25-31% higher than the current quarter to Japan, another major buyer of the light metal.
Japanese buyers were asked to pay premiums of $185 to $190 per metric ton for July-September primary metal shipments over the LME cash price, a sign of solid demand.
For other metals, nickel edged down 1.2% to $17,255, zinc eased 2.2% to $2,785, lead rose 0.1% to $2,159, and tin shed 0.4% to $32,030.
