A further 31,825 tonnes was delivered in to LME-listed warehouses today, with the majority entering Busan, taking the total inventory delivered in over the last three days to 76,800 tonnes.
The three-month copper price has dropped nearly 4% since the start of the week and is now down to below $6,500 per tonne for the first time since the beginning of August.
“The underperformance of LME copper since Monday seems to be driven by a notable deterioration in the present fundamental picture, as gauged by the fluctuations of available inventories,” Metal Bulletin analyst Boris Mikanikrezai said.
“We maintain our constructive view on LME copper over the very short term although we recognise that prices may fall much further in the coming days,” he added.
In the rest of the complex, zinc prices fell back from near ten-year high levels to below $3,000 per tonne, while nickel prices also continued to retreat lower, dropping a further $130 per tonne.
“Nickel extends its underperformance this morning on very good volume with 5,800 lots trading by 8am (+174% on the 20-day average). Nickel has already spanned $420 [and] the market has now traded down 10% from the recent $12,380 high,” Marex Spectron noted.
Prices also came under pressure from the release of disappointing Chinese economic data on Thursday, which showed that the world’s second-largest economy had continued to cool last month, stoking fears that momentum in the country’s economic growth could be starting to decelerate.
Tin was the only base metal to trade in positive territory for the second morning in a row.
Copper continues to dip
Base metals prices lower, bar tin
Currency moves and data releases