Copper prices fell on concerns that the top consumer – China – will take action to limit the rise in industrial metal prices.

Copper prices on the London bourse fell 0.2 per cent to $9,980 per tonne. So far, copper prices have fallen nearly 8% since a record high of $10,747.5 a tonne in May 2021. Previously, the price of copper fluctuated in the range of 9,800-10,000 USD/ton.
The Shanghai Metal Exchange and China analysts said the country plans to release state reserves of non-ferrous metals including copper, aluminum and zinc in a program that runs until the end of 2021.
“Aluminum and zinc sales are likely to be significantly higher than copper as China is short copper and the refined copper market is not tight right now,” Citi analysts said.
China’s state planner last week renewed his pledge to step up commodity price monitoring, as inflation among domestic producers hit a 12-year high.
Copper stocks at London’s registered warehouses at 138,300 tonnes, up 24% since May 12, have eased supply worries in the London market.
This is demonstrated by a discount of $28 a tonne on cash on a three-month contract compared to a premium of $20 a ton on April 26.
Aluminum rose 1.3% to $2,497 a tonne, zinc rose 0.4% to $3,060, lead rose 0.1% to $2,201, tin rose 0.4% to $31,700 and nickel rose 1 .3% to $18,465.
In Peru, the world’s second-biggest copper producer, production could fall as candidate Pedro Catisllo is likely to emerge victorious in the presidential election.
According to the latest update, Catisllo has about 50.2% of the votes, about 60,300 votes (0.344%) ahead of rival Keiko Fujimori. The National Election Commission (JNE) has yet to declare a winner in the face of challenges from Fujimori’s campaign.
Catisllo has vowed to break Peru’s constitution, receive up to 70% of profits from mining companies operating in the country, and impose a new resource tax on the sale of minerals. However, analysts are not too worried about this issue.

His campaign has softened views on nationalization, but still argues that miners are not paying enough taxes. Meanwhile, Fujimori’s campaign has largely focused on the country’s mineral supply, with plans to use 40% of tax dollars from mining companies to pay residents in mining sites directly. She also proposed a contribution system whereby companies would pay people more for rising mineral prices.

List of futures trading prices of some metals on the Shanghai floor

(Unit: CNY/ton)

Source: VITIC/Reuters

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