Prices of most non-ferrous metals fell on Wednesday, as the stability of the dollar and weak global economic data affected the demand outlook in this sector.
Three-month copper on the London Metal Exchange was down 0.6% at $8,309.50 a metric ton by 0627 GMT, while the most traded August copper contract on the Shanghai Futures Exchange was down 0.6% at $67,800 yuan ($9,364.51) a metric ton.
The dollar leaned higher as traders looked forward to the release of the Federal Reserve’s minutes later in the day in search of clues to the path of US monetary policy.
A stronger dollar makes green-priced metals more expensive for holders of other currencies.
Meanwhile, data released earlier this week from the US and Europe showed that manufacturing in June fell to the weakest level since the early days of the coronavirus pandemic. China, the metals’ largest consumer, also showed slowing growth.
“The sentiment did not improve after data showed US manufacturing activity waning…Europe is experiencing similar weakness as the manufacturing sector struggles to recover from the latest energy crisis,” ANZ analysts said in a note.
They said that “traders await more data on the health of the Chinese economy after its manufacturing index showed a slowdown in growth.”
Lower stocks on global stock exchanges supported copper prices.
Meanwhile, the global copper smelting activity
He falls
Commodity broker Marex and satellite service SAVANT said in June the downward trend from early this year has resumed, although activity in China rose to its highest level since January 2021.
LME aluminum was down 0.6% to $2,155.50 a metric ton, zinc was down 1.3% to $2,379.50, lead was down 0.3% to $2,086, tin was down 0.4% to $27,200, and nickel was down 0.1% at $20,495.
SHFE aluminum fell 0.9% to 17,885 yuan a metric ton, nickel fell 0.6% to 158,200 yuan, lead fell 0.3% to 15,495 yuan, tin fell 0.1% to 2,224,980 yuan, while zinc increased 0.3% to 20,125 yuan.
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($1 = 7.2401 yuan) (Reporting by Mi Nguyen in Hanoi; Editing by Janan Venkatraman and Eileen Soering)
