BEIJING, July 19 (Reuters) – Prices of copper dipped on
Wednesday, weighed by demand concerns in top consumer China
where supply is expected to rise, although losses were capped by
a weak dollar.
Three-month copper on the London Metal Exchange
nudged 0.1% lower to $8,467 per metric ton by 0144 GMT,
extending a downtrend from the previous session.
Weak copper consumption in China has been reflected in a
widening spot discount in the market and increase in
inventories.
Demand from the power sector, the main consumer of copper,
is expected to grow slower in the second half of this year,
having posted a healthy gain in the second quarter, according to
CITIC Futures.
China consumption will grow 3.9% this year, while refined
copper production in China will rise 8%, with new projects
coming online, CITIC Futures added.
June copper imports climbed month-on-month, thanks to an
improvement in import conditions, and participants anticipate a
continuing monthly increase in July imports.
The dollar index edged up on Wednesday but was close
to its 15-month low. A weaker dollar makes the greenback-priced
commodity cheaper for non-dollar holders.
The most-traded August copper contract on the Shanghai
Futures Exchange was up 0.2% to 68,570 yuan ($9,531.42)
per metric ton.
SHFE aluminium gained 0.1% to 18,230 yuan a metric
ton, zinc ticked 0.1% up to 20,210 yuan, lead
was little changed at 15,720 yuan, nickel jumped 2.5%
to 167,120 yuan, and tin rose 1.2% to 233,680 yuan.
LME aluminium climbed 0.4% to $2,213 a metric ton,
tin rose 0.2% to $25,585, lead nudged up 0.1% to
$2,097.50, nickel gained 0.1% to $21,110, while zinc
shed 0.5% to $2,382.50.
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($1 = 7.1941 Chinese yuan renminbi)
(Reporting by Siyi Liu and Dominique Patton; Editing by Sonia
Cheema)
Read More: Commodities : Copper under demand pressure, weak dollar caps losses