Commodities

METALS-Copper eases on fears over China price curbs

Credit: REUTERS/KHAM

Copper fell on Thursday, hit by fresh concerns around price controls after surging producer inflation strengthened China's resolve to keep commodity prices in check.

By Mai Nguyen

HANOI, June 10 (Reuters) - Copper fell on Thursday, hit by fresh concerns around price controls after surging producer inflation strengthened China's resolve to keep commodity prices in check.

Three-month copper on the London Metal Exchange CMCU3 fell 0.4% to $9,938.50 a tonne by 0510 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange SCFcv1 dipped 0.3% to 71,420 yuan ($11,184.72) a tonne.

China's state planner on Wednesday renewed its pledge to step up monitoring of commodity prices and strengthen supervision of spot and futures markets, as domestic producer inflation hit its highest in more than 12 years.

Copper prices have surged 28% so far this year on the LME and 22% on ShFE. Last month, both contracts hit record highs.

"Such a rise in raw material prices has fueled concerns that officials will crack down on speculation. China's economic policy agency vowed to strengthen its control over commodity markets," said ANZ in a note.

China is the world's biggest consumer of metals.

The market is also awaiting U.S. inflation data, due later on Thursday, for clues on the Federal Reserve's position on tapering monetary stimulus, a move that could dampen demand for metals. MKTS/GLOB

FUNDAMENTALS

* LME aluminium CMAL3 fell 0.4% to $2,448.50 a tonne, while nickel CMNI3 declined 0.9% to $17,980 a tonne. In Shanghai, aluminium SAFcv1 rose 0.6% to 18,480 yuan a tonne, nickel SNIcv1 shed 0.5% to 131,250 yuan a tonne, while lead SPBcv1 rose 0.9% to 15,400 yuan a tonne.

* Malaysia Smelting Corporation Bhd MSCB.KL, the world's third-biggest refined tin maker, said on Wednesday it had declared force majeure on its deliveries to customers because of coronavirus-related disruptions to production.

* The premium of LME cash aluminium and the three-month contract CMAL0-3 rose to $11.80 a tonne, its biggest since December 2019, indicating tightening supply of nearby contracts.

* For the top stories in metals and other news, click

TOP/MTL or MET/L

($1 = 6.3855 yuan)

(Reporting by Mai Nguyen; Editing by Ramakrishnan M. and Devika Syamnath)

((mai.nguyen@thomsonreuters.com; +842438259623; Reuters Messaging: mai.nguyen.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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