Onome Amuge
Copper prices eased on Wednesday, ending a four-session rally, as a stronger US dollar, climbing inventories and worries over demand in China pressured sentiment in the industrial metals market.
The benchmark three-month copper contract on the London Metal Exchange (LME) was down 0.5 per cent at $9,790.50 a tonne by mid-morning trading in London, retreating from a two-week high of $9,862 hit the previous day.
Copper has nonetheless gained 11 per cent so far this year, recovering from a 16-month low of $8,105 in early April, amid hopes of tighter supply and improving global demand.
China, the world’s largest consumer of metals, remains a central driver of market sentiment. Fresh economic data highlighted mixed signals, as industrial profits declined for a third consecutive month in July, though the contraction was narrower than in May and June. Within the figures, manufacturing sector profits rose 6.8 per cent.
“Chinese demand is showing signs of slowing, with headwinds for the economy including tariffs and the ailing property sector,” said Ewa Manthey, commodities strategist at ING.
Alastair Munro, senior base metals strategist at Marex, said the modest improvement in manufacturing profits could be linked to Beijing’s campaign in recent months to curb excess industrial capacity, particularly in metals.
Metals were also hit by renewed strength in the dollar after US President Donald Trump’s move to dismiss Federal Reserve governor Lisa Cook, a decision that revived concerns about the central bank’s independence.
A stronger greenback makes commodities priced in dollars more expensive for holders of other currencies, dampening demand.
Copper inventories in LME-registered warehouses rose by another 1,100 tonnes on Wednesday, bringing total stocks to 156,100 tonnes. That represents a 72 per cent increase since late June.
Stocks monitored by the US Comex exchange have also nearly tripled so far this year, reinforcing market concerns over oversupply.
Other base metals traded lower. LME aluminium fell 0.8 per cent to $2,616.50 a tonne, zinc declined 0.7 per cent to $2,793.50 and nickel slipped 0.6 per cent to $15,200. Lead gained 0.2 per cent to $1,991.50, while tin added 0.2 per cent to $34,275.
On ICMR, registrars and the Nigerian capital market