Copper drops to more than one-week low on demand concerns
LME copper traded 1.2% lower at $14,450 a metric ton in official rings, the lowest since Sept. 17.
(Updates with official prices) By Pratima Desai LONDON, Sept 28 (Reuters) — Copper prices fell to their lowest in more than a week on Monday as weak economic data from top consumer China, rising oil prices and the stronger dollar reinforced weak demand prospects. 2% lower at $14,450 a metric ton in official rings from an earlier $14,354, the lowest since September 17. China's industrial profit growth slowed further in August as strength in technology manufacturing amid the AI boom was outweighed by persistently weak domestic demand. "The key data point weighing on sentiment is China's August industrial enterprise profits...
underscoring that the recovery remains narrow and concentrated in AI-linked and export sectors rather than broad industrial demand," Britannia Global Markets said in a note. " On the technical front, copper's drop below the 21-day moving average around $14,430 could mean further losses. The next support level is at the 50-day moving average around $14,175. Brent crude oil climbed more than 2% after US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz.
With oil prices nearing $110 a barrel, traders said the market is focusing on the damage to growth and inflationary pressures which would mean higher interest rates, another headwind for economies. Looking ahead, traders expect surveys of purchasing managers in China's manufacturing sector due this week to shed light on demand for industrial metals. Elsewhere, concerns about copper supplies on the LME have again created a premium for the cash over the three-month forward. The premium briefly slipped into a discount earlier this month after a Reuters report raised doubts about whether Trump would impose tariffs on copper imports.
Overall, a rising US dollar, which makes dollar-priced metals more expensive for holders of other currencies, was also weighing on the metals complex. 1% to $16,340. com;)