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Copper prices on the London Metal Exchange fell below the key $6,500 mark following the tumble in crude oil prices before rallying back slightly in Asian trade on Friday November 28.
Brent crude oil fell to a four-year low of $72.82 a barrel while US crude fell almost 7% to $68.59. This led to the dollar rising and oil-linked currencies and shares tumbling.
At 02:32 London time, the three-month copper contract was down $28 from its opening to trade at $6,496.75 per tonne. It touched a high of $6,527 per tonne and a low of $6,484.25 per tonne.
With the USA celebrating Thanksgiving holidays on Thursday, the market was surprised to see more than 4,000 lots of copper being traded in the first half-hour of opening of LMEselect.
“There was [Chinese] Mainland interest under $6,500 per tonne,” said a broker in Asia.
A second broker defined the fall as “aggressive”, adding that there will be more buying interest from China below $6,500 per tonne.
Shanghai Futures Exchange copper prices fell following LME’s losses in Asian morning trading, with the most traded February contract opening at 46,660 yuan ($7,568.11) per tonne before falling to 46,140 yuan at 10:30 Beijing time.
Spot copper prices on the Changjiang Nonferrous Metals Exchange lost 660 yuan to 47,030-47,060 yuan per tonne.
By 02:32 London time, three-month aluminium was down $1.75 at $2,040 per tonne. Lead was down $2.75 at $2,054.75 per tonne. Zinc traded flat at$2,255 per tonne. Nickel was down $5 at $16,300 per tonne. Tin was untraded.
Shivani Singh shivani.singh@metalbulletinasia.com Twitter: shivani.singh@metalbulletinasia.com