Commodities

METALS-Copper set for weekly fall on China price-curb fears

Credit: REUTERS/KHAM

Copper prices fell on Friday and were on track for a weekly decline as investors worried about possible measures by Chinese authorities to curb a rally in commodity prices.

HANOI, June 11 (Reuters) - Copper prices fell on Friday and were on track for a weekly decline as investors worried about possible measures by Chinese authorities to curb a rally in commodity prices.

Three-month copper on the London Metal Exchange CMCU3 fell 0.2% to $9,871 a tonne by 0301 GMT. The contract was down 0.8% on a weekly basis.

The most-traded July copper contract on the Shanghai Futures Exchange SCFcv1 declined 0.8% to 70,920 yuan ($11,106.76) a tonne and was also set for a weekly decline.

China's state reserves administration plans to sell its reserves of copper, aluminium and zinc in a programme expected to last until the end of 2021, Chinese information provider Shanghai Metal Exchange Market said.

China is the world's biggest copper consumer.

The possible action by the administration came as domestic producer inflation in May hit its highest in more than 12 years due to surging commodity prices, while copper prices hit a record high last month.

FUNDAMENTALS

* LME aluminium CMAL3 rose 0.4% to $2,486.50 a tonne and lead CMPB3 advanced 0.6% to $2,188 a tonne. ShFE aluminium SAFcv1 climbed 1.9% to 18,855 yuan a tonne and ShFE nickel SNIcv1 increased 2% to 134,800 yuan a tonne.

* China is looking to release 800,000-900,000 tonnes of primary aluminium from its state reserves as soon as next month to ease high prices for the metal, consultancy CRU said in a note to clients, citing local market contacts.

* For the top stories in metals and other news, click TOP/MTL or MET/L

MARKETS NEWS

* U.S. bond yields fell to three-month lows and a broad gauge of Asian shares rose as investors saw enough one-off factors in U.S. consumer price data to back the Federal Reserve's conviction that rising inflation will be transitory. MKTS/GLOB DATA/EVENTS (GMT)

0600 UK GDP Est 3M/3M April

0600 UK GDP Estimate MM, YY April

0600 UK Manufacturing Output MM April

1400 US U Mich Sentiment Prelim June

($1 = 6.3853 yuan)

(Reporting by Mai Nguyen; editing by Uttaresh.V)

((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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