MethodologyContact usLogin
The three-month copper price was down by $28 per tonne after a third straight day of deliveries into LME warehouses. On-warrant copper stocks are now their highest level since June 2013, which has contributed to the red metal’s weaker tone.
A further 8,000 tonnes of copper were delivered into LME sheds this morning, which follows deliveries of 37,575 tonnes and 35,175 tonnes on Monday and Tuesday respectively.
The rest of the complex was similarly weaker this morning due to a lack of clear direction in the market, with participants likely to be paying close attention to major data releases from the United States later today – see data section below.
“Overall it has been a much more sedate session so far today, both in terms of absolute volumes and ranges, with many traders staying away from the base metal noise for now as the random and volatile nature of the onshore sentiment and the broader macro makes the LME market a 2nd or 3rd derivative at best,” said Matt France, Marex Spectron said.
Aluminium edged $6 per tonne lower but the downside was cushioned by a fresh 35,025-tonne cancellation, with the majority of the material cancelled at warehouses in Port Klang and Rotterdam.
Meanwhile, nickel, lead and zinc prices dipped lower but were little changed from Tuesday’s 5pm close with the market consolidating recent gains.
“With prices off again this morning, the market seems to be waiting to see if earlier strength has just been a pause in the sell-off. Concerns over trade wars linger and that seems to be deterring bargain hunters from chasing prices higher,” Metal Bulletin senior analyst William Adams said.
“Overall, we remain bullish on the outlook for the global economy so we see this correction as temporary and are on the looking out for buying opportunities,” he added.
Base metals prices
Currency moves and data releases