Copper prices fell for the first time this week as mixed signals from the Fed made investors nervous about the timing of a U.S. rate hike, which could weaken demand for the metal.
At the end of the session, three-month copper futures on the London floor fell 0.6 percent to $9,429 per ton. Prices for the metal, used mainly in the power and construction industries, have fallen about 12% from a record high of $10,747.50 a tonne hit in May.
Copper stockpiles on the London Stock Exchange are now at their highest level since June 2020, at 185,200 tonnes.
Indonesia is considering a plan to limit the construction of smelters that produce nickel or ferronickel iron to optimize the use of its limited ore reserves for high-value products.
On the London floor, Nickel price increased 2% to 18,430 USD/ton. Other metal commodities also had a change. Aluminum prices were unchanged at $2,441/ton, zinc was 0.6% higher to $2,910, lead was up 1.1% to $2,217, while the price of lead was up 1.1% to $2,217. tin price rose 0.8% to $30,650.
China will auction 20,000 tons of copper, 30,000 tons of zinc and 50,000 tons of aluminum on July 5 and 6, 2021.
On June 23, China announced details of the first round of auctions of metal items in state reserves, and the market reaction did not appear to be as expected.
China’s National Strategy and Food Reserve said it will auction 20,000 tons of copper, 30,000 tons of zinc and 50,000 tons of aluminum on July 5 and 6, 2021. It is part of Beijing’s plan to reduce heat in the commodity market, sending copper and iron ore prices to all-time highs amid a post-pandemic surge in demand.
However, the initial market reaction to this auction was not so strong as the supply was too small to make a difference to the domestic market. Specifically, the amount of copper sold was only 2.3% of domestic output and 4.4% of imports in May 2021.
It’s also possible that the authorities are just checking the market’s reaction to see where demand is, thereby adjusting sales in subsequent auctions. However, so far, the results are not as expected because copper and aluminum prices have not shown any signs of decreasing.
It is worth noting that zinc has the highest percentage of monthly output at auction, and the price is less affected than copper and aluminum. This suggests that if Beijing wants to lower the price of these three metals, it may have to free up more from its stockpile. However, this action will create a spread between the domestic price and the international reference price, which traders will seek to use to generate profits and thereby undermine the purposes of the regulatory authorities. water is to lower prices in a sustainable way.
Futures trading price list of some metals on the Shanghai Exchange (Unit: CNY/ton).
| Type Name | Futures | June 25th | Difference from yesterday | |
| Steel Price | Delivered October 2021 | 5.006 | +30 | |
| Copper Price | Delivered in August | 68.920 | -100 | |
| Zinc price | Delivered August | 21.945 | +105 | |
| Nickel Price | Delivered August 2021 | 137.900 | +3.680 | |
| Silver Price | Delivered December 2021 | 5.445 | -7 |
Nguồn: VITIC/Reuters
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