70912
Copper Hits 3-Year High as Speculators Pile Into Market
Copper Hits 3-Year High as Speculators Pile Into Market

Copper Hits 3-Year High as Speculators Pile Into Market

Copper Hits 3-Year High as Speculators Pile Into Market

Copper hit a three-year high and nickel touched its strongest in eight months on Tuesday as mostly technical signals prompted speculators and funds to pour more cash into base metals.
The buying took place against backdrop of strong results for mining firms and talk of shortages in some metals, but analysts said there was nothing new to justify the rich prices, Reuters reported.
“There’s nothing really fundamental to drive things onwards from here, so I think it’s a bit of misplaced euphoria and trend-following buyers jumping on the bandwagon,” said Robin Bhar, head of metals research at Societe Generale in London.
“Admittedly the charts have seen some good upside breaks on copper, zinc and aluminum, but I think things are slightly overextended here so there should be correction to where we broke out—around $6,500 on copper and just below $3,000 on zinc.”
Nickel and zinc, both mainly used in steel production, benefited as Asian ferrous prices extended gains with Chinese iron ore futures surging nearly 5% to five-month highs.
Copper: Benchmark copper on the London Metal Exchange struck $6,642.50 a ton, the highest since November 2014, before paring gains to $6,612 by 1034 GMT, a gain of 0.4%. It rose 1.5% in the previous session.
“Copper turnover has picked up since the London AM began on the back of a CTA (Commodity Trading Advisor) bid,” Alastair Munro at broker Marex Spectron said in a note. CTA funds often use computer systems to generate buy and sell signals based on technical signals.
Chilean miner Antofagasta said it had a favorable outlook on the copper price as it more than tripled its interim dividend on Tuesday after a rally in copper prices boosted first-half earnings.
Nickel: LME three-month nickel gained 1.3% to $11,460 a ton, the strongest since December after LME inventories fell on Monday.
Nickel Deficit: There was a global deficit of 36,800 tons of refined nickel in the first half of the year, slightly narrower than a deficit of 38,200 tons in the same period of last year, data showed.
Aluminum: LME aluminum dipped 0.2% to $2,076.50 a ton on trade selling after LME data showed on-warrant inventories—those not earmarked for delivery—rose by 16,275 tons, the fifth straight day of increases.
Zinc: LME zinc added 0.7% to $3,147 after prices climbed on Monday to $3,180.50, the highest in nearly a decade as expectations of a large market deficit fueled speculative buying.
 

 

Short URL : https://goo.gl/rbnsqF
  1. https://goo.gl/mhK7yG
  • https://goo.gl/svNXFu
  • https://goo.gl/hZu5ba
  • https://goo.gl/XnJTTF
  • https://goo.gl/L3Wvz6

You can also read ...

China Challenges US Solar Panel Duties
China says it is challenging a US tariff hike on solar panels...
In a retaliatory move, President Recep Tayyip Erdogan’s government on Wednesday announced higher tariffs on some US imports, namely on passenger cars (120%) and leaf tobacco (60%).
Turkey has raised tariffs on some US imports, including...
File picture of Kim Jong-un (L) and Moon Jae-in at the truce village  of Panmunjom, South Korea.
South Korea President Moon Jae-in on Wednesday offered a bold...
World trade volume growth peaked in January at almost 5.7% year-on-year but nearly halved to less than 3% by May.
Cyclical indicators point to slower and more uneven growth in...
Nigeria CPI Drops to 11.14 Percent
Nigeria’s National Bureau of Statistics says the consumer...
Moody’s Predicts Slower Fiscal Progress in S. Africa
South Africa’s fiscal consolidation will be slower than the...
Sudanese Hit by Bread Shortages
Bread shortages have hit Sudan, with wheat traders blaming a...
Transport tickets and fuel have driven up costs for consumers.
Inflation in the UK climbed in the month of the July, as had...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus