Copper up, but Potential Chinese Price Curbs Weigh

0
61

LONDON, May 24 Reuters Copper prices rose on Monday as a softer dollar spurred modest purchases, but gains were capped by concerns over price curbs on industrial metals in top consumer China.

Benchmark copper on the London Metal Exchange LME was up 0.3 at 9,916 a tonne at 1014 GMT.

However, prices of the metal used widely in the power and construction industries are down 8 since touching a record high of 10,747.50 a tonne earlier this month.

The dollar is giving some support to copper, but overall the mood is negative, one metals trader said. Still, the market did need a breather and consolidation.

PRICES Chinas market regulators warned industrial metal companies to maintain normal market order during talks on the significant gains in metals prices this year.

Chinas government also said last week that it would manage unreasonable price increases for commodities such as copper, coal, steel and iron ore.

DOLLAR A lower U.S. currency makes dollardenominated metals cheaper for holders of other currencies, which could potentially boost demand.

SPREAD Some concern about supplies on the LME market has narrowed the discount for cash copper over the threemonth contract to about 14 a tonne from 28 last week.

TECHNICALS Upside resistance for copper comes in at the psychological 10,000 and then at 10,080, where the 21day moving average currently sits. Trendline and the 50day moving average at 9,400 provide strong support.

CHILE Supporting copper is political uncertainty…

LEAVE A REPLY

Please enter your comment!
Please enter your name here