Copper prices are falling, hampered by geopolitical risks and increased inventories

FX678 Finance ·  10/23/2023 17:36

Copper prices fell on Monday because investors were uneasy about developments in the Middle East and copper inventories increased.

As of 17:34 Beijing time, the London Metal Exchange (LME) three-month copper CMCU3 fell 0.43% to $7,902.50 per tonne; SCFCv1, the main 12-month copper on the Shanghai Futures Exchange, fell 1.1% to 65,640 yuan ($8,971.87) per ton.

LME copper inventories have been increasing since mid-July, reaching a two-year high at the end of last week.

On Friday, copper inventories on the Shanghai Futures Exchange rose for the second week in a row.

The increase in supply has also benefited from favorable import conditions for importers, as reflected in the rise in Yangshan copper premiums.

Analysts at Guangfa Futures said in a report that although gross domestic product (GDP) data for the third quarter were better than expected, the increase in supply may put pressure on copper prices.

LME aluminum CMAL3 fell 0.6% to $2,169 per tonne; tin CMSN3 fell 0.6% to $24,830; zinc CMZN3 fell 1.6% to $2,398.50; lead CMPB3 fell 0.6% to $2,086; and nickel CMNI3 fell 0.4% to $18,520.

Shanghai Aluminum SAFCV1 fell 0.7% to 18,850 yuan per tonne; Shanghai Zinc SZNCv1 fell 0.6% to 20,845 yuan; Shanghai Lead SPBCv1 fell 0.1% to 16,480 yuan; Shanghai Nickel SNICv1 fell slightly by 0.3% to 148,710 yuan; and Shanghai-Xi SSNCv1 fell 1% to 21,4560 yuan.

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