LONDON- Prices of copper and most other industrial metals fell on Wednesday as data from China, the biggest consumer, pointed to slowing economic growth and therefore weaker demand for metals.
Benchmark copper on the London Metal Exchange (LME) was down 1.9 percent at $9,230 a ton after falling to $9,135, its lowest since Oct. 7.
Prices are still up almost 20 percent this year, however, with many analysts expecting demand for copper wiring to increase as the world moves from fossil fuels to electrification.
The Chinese data “signaled that the demand backdrop for metals is unlikely to improve, at least in the short term”, said Julius Baer analyst Carsten Menke, adding that tight supply would still keep copper prices elevated.
A slow recovery in Chinese production, deficits, robust demand and dwindling inventories next year are likely to ensure aluminum prices outperform other metals traded on the London Metal Exchange.
The copper, zinc and nickel markets are expected to be effectively balanced next year and prices are likely to be steady or lower by the end of 2022.
Aluminum hit 13-year highs of $3,229 a ton in October on the London Metal Exchange mainly due to shortfalls created by tight Chinese supplies and ballooning demand from the transport, packaging and construction industries after the lifting of coronavirus restrictions. — Reuters
