LONDON, Oct 7 (Businesshala) – Copper prices edged higher on Thursday, helped by a rebound in global equity markets, plunging exchange inventories and the threat of a supply disruption at a mine in Peru.
Benchmark copper was up 2.5% at $9,268 a tonne by 1630 GMT on the London Metal Exchange (LME).
However, the price declined from the all-time high of $10,747.50 in May as global economic growth faltered. Independent analyst Robin Bhar said copper is likely to decline further before demand picks up.
“If you want to trade copper by the end of the year, you are probably on the short side. But beyond that, you will probably be on the long side,” he said.
Markets: World equities got their foot back on gas as hopes rose that Washington could resolve its debt-limit dispute and plunging energy prices cooled fears of “stagflation.”
Peru: A local community in Peru’s Espinar province plans to indefinitely block a major mining road, a local leader said.
Inventory: On-warrant stock in LME-registered warehouses fell to 82,850 tonnes from 168,075 tonnes as on September 21. Stock at 43,525 warehouses on the Shanghai Futures Exchange (SHFE) is the lowest since 2009. MCUSTX-TOTALCU-STX-SGH
Outlook: Copper analysts are reviewing their price forecasts following turmoil in China’s construction sector and power supply.
The Bank of Japan presented its most disappointing outlook on regional economies in more than a year.
China: Chinese markets reopened on Friday after being closed for a public holiday on October 1.
Surplus: The International Copper Study Group (ICSG) said that the global copper market will see a deficit of 42,000 tonnes this year and a surplus of 328,000 tonnes in 2022.
Germany: German industrial output fell in August, the biggest drop since April last year, official data showed.
Other metals: LME aluminum rose 2% to $2,953.50 a tonne, zinc rose 1.3% to $3,053, nickel rose 1.4% to $18,320, lead rose 1.1% to $2,175.50 and tin rose 0.4% to $35,300.