Base metals witnessed phenomenal performance on Thursday as positive US economic data coupled with easing European debt concerns supported gains. Dollar weakness added as an additional supportive factor to prices on the London Metal Exchange.
Base metals are headed for record weekly gains as prices have bounced back from their lows after European leaders planned to expand a bailout fund in order to ease the European sovereign debt crisis.
Copper
Copper continued to be the top performer on Thursday as the red metal gained a whopping 6 percent on the LME yesterday and prices closed above the crucial $8000/tonne mark. Prices were largely on expectations of an improving macroeconomic scenario. But concerns with respect to slowdown in demand from China can affect sharp upside in the short-term.
The International Copper Study Group (ICSG) indicated that in the first seven months of this year, copper demand in China has declined 5 percent. Moreover, further demand slowdown can be expected as economic growth in China is expected to slow.
On a year-on-year basis, Japan’s output of rolled copper products declined by 6.8 percent and fell to 70,092 tonnes in September on a seasonally adjusted basis. It shows a drop of 0.7 percent in September from August.
The Japanese demand for copper has declined because of gauge of economic activity and financial crisis. Demand from car makers increased for first time in 12 months but orders from chip and electronics manufacturer remained weak.
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Base Metal Witnesses Uptrend on US Economic Data
Published 10/28/2011, 09:29 AM
Updated 05/14/2017, 06:45 AM
Base Metal Witnesses Uptrend on US Economic Data
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