Copper falls on weak chinese data and dollar strength

Scarlet Ibarra / April 11, 2024 | 11:13
The prices of copper were declining on Thursday due to the weakness in inflation data in China, the world's largest consumer of metals, and the strength of the dollar.

At 115 GMT, copper for three-month delivery on the London Metal Exchange (LME) was down 0.2% at $9,359 per ton, moving away from the 14-month high of $9,523 reached on Tuesday.

On Thursday, data was released showing that consumer inflation in China cooled more than expected in March, while producer price deflation persisted due to weak demand. This pushed the dollar index to nearly a five-month high, with gains extending on Thursday, making commodities priced in the greenback more expensive for clients using other currencies.

"The question is whether China will continue to offer partial stimuli. Much of their stimulus is focused on the environment and basic metals," said Nitesh Shah, commodity strategist at WisdomTree.

On Wednesday, copper and global stock markets fell after U.S. inflation data rose more than expected in March, pushing back the anticipated date for the first interest rate cut from June to September.

In other base metals, nickel declined 1% to $18,175; lead decreased 0.4% to $2,165.50; tin dropped 0.2% to $31,960; zinc was down 0.2% at $2,731.50; and aluminum on the LME was up 0.4% at $2,464.50 per tonne.

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