The most-traded January copper contract on the SHFE stood at 53,280 yuan ($8,069) per tonne as of 10.34am Shanghai time, down by 130 yuan from the previous session’s close.
The dollar index was up by 0.03% at 93.24 as of 10.30 Shanghai time. The index had reached a high of 93.34 on Tuesday, its highest since November 23.
“The market continued the downward slide from Monday on weakening Chinese macro data, slowing home sales figures noted yesterday, alongside a marginally stronger dollar, which prompted profit-taking and subsequently long liquidation in a quiet market,” Sucden Financial Research said late on Tuesday.
Compounding the weakness in the copper prices was the news that Southern Peru Copper Corp’s output had been unaffected by recent industrial action.
“Southern Copper said [Wednesday] that output was unaffected as striking workers continue to block a key road into the company’s main smelter,” ANZ Research said on Wednesday.
“This came amid reports that Peru is close to seeing the benefits of recent investment. The Deputy Mines Minister said output should rise strongly in 2018 after a 40% increase in investment in recent months bears fruit,” the bank added.
Furthermore, China’s sluggish copper consumption is also weighing on red metal prices.
“The continuous weak performance of copper is resultant from increased expectations that copper demand [in China] will weaken,” China’s Citic Futures Research said on Wednesday.
Zinc buoyed by stock drops
Others lower, bar nickel
Currency moves and data releases