Copper Set for First Weekly Loss in over One Month on Credit Worries

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HANOI, May 14 Reuters Copper prices fell on Friday and were on track for their first weekly decline in more than a month, as worries of tightening credit that could potential cap demand of the metal.

Threemonth copper on the London Metal Exchange dipped 1.8 to 10,161 a tonne by 0605 GMT, down 2.5 on a weekly basis, its first decline since the week ended April 2.

The mosttraded June copper contract on the Shanghai Futures Exchange dropped 3.2 to 73,600 yuan 11,431.41 a tonne, also set for a weekly decline.

Supply will improve, while we note credit impulse data in the United States and China is easing, which will help demand taper off later this year and next, said Fitch Solutions in a report.

Metal prices will ease later in the year as the ongoing supplydemand mismatch eases.

Chinas new bank loans fell more than expected in April while money supply growth slowed to a 21month low, as the central bank gradually scales back pandemicdriven stimulus to reduce debt and financial risks in hot areas of the economy.

Earlier this week, Chinas state council said the country, the worlds biggest metals consumer, will monitor changes in overseas and domestic markets and effectively cope with a fast increase in commodity prices, without specifying how.

Both copper contracts hit their record high on Monday.

FUNDAMENTALS

LME aluminium fell 1.6 to 2,412 a tonne, nickel was down 1.3 to 17,095 a tonne and zinc advanced 0.8 to 2,896 a tonne.

In Shanghai, aluminium fell 3.5 to…

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