Copper and other industrial metals resumed their climb on Wednesday amid the falling dollar and fears that the global energy crisis could affect already weakened inventories.
Three-month copper on the London Metal Exchange (LME) rose 0.5% to $ 10,193 a tonne after earlier falling to $ 9,908.50 after China’s state planner said it was looking for ways to cool record prices for copper. Coal.
Power shortages in China and rising electricity prices in Europe raise fears of supply shortages for base metals, some of which have inventory levels at multi-year lows.
“There are very tight copper stocks at the moment and that remains a concern, but prices (are) decelerating mainly on technical signals showing that copper was overbought,” said Xiao Fu, Bank of Bank’s chief of commodity strategy. China International.
Low inventories of the red metal in the LME system pushed prices to a high of $ 10,452.50 on Monday, close to a May record of $ 10,747.50.
The LME spot copper premium over the three-month contract eased to $ 157 per tonne from an all-time high of $ 1,103.50 on Monday, pointing to a decrease in concerns about the metal for early delivery.
Copper on-warrant stocks in deposits registered with the LME increased by 2,650 tonnes to 17,875 tonnes, still near lows since 1998. Inventories on the Shanghai Futures Exchange total 41,668 tonnes, their lowest level since 2009.
The LME, the world’s oldest and largest industrial metals market, intervened Tuesday night and declared that it would amend the lending rules and implement a backwardation limit and deferral mechanism for copper trading with an effect righ now.
Cheaper coal and greater supply could ease inflation in China’s factories, which hit record highs in September due to energy shortages and rising commodity prices.
Reference-www.eleconomista.com.mx