London, August 8th news: On Tuesday, the London Metal Exchange (LME) copper futures rose as traders became more concerned about possible supply disruptions in Chile.However, the strengthening of the U.S. dollar has curbed the rise.
On Tuesday at 1625 GMT, the LME benchmark three-month copper futures rose 1.7% to $9,428 per ton.The contract fell to $9369.5 on Monday, its lowest point in two and a half weeks.
Traders said that many copper mines in Chile are facing the threat of strikes, and the possible supply interruption is causing some unease, helping to boost copper prices.However, the US dollar exchange rate is rising, and China’s economic growth is slowing down.
On Monday evening, the unions of BHP Billiton and the Chilean Escondida copper mine said they would extend the government-mediated contract negotiations for another day, which is also the last effort to avoid a strike.Escondida is the world’s largest copper mine, accounting for about 2400% of the 4.5 million tons of global copper supply.
On Tuesday, workers at Japan’s JX Metals Co., Ltd.’s Caserones copper mine in Chile will suspend work from Tuesday because the final negotiations on the collective labor contract broke down. Caserones produced 2020 tons of copper in 126,972.
Investors will also pay attention to the data released by China in the next few days, including total social financing, loans, industrial production and investment, in order to understand the prospects of industrial metal demand, China accounts for about half of the global industrial metal consumption.
The appreciation of the U.S. dollar on Tuesday contained further increases in copper prices because it meant that U.S. dollar-denominated metals were more expensive for buyers of other currencies.
At present, LME’s copper supply is sufficient. The registered warehouse inventory is 236,100 tons, which is more than twice the level in mid-May. This is also reflected in the spot month contract price lower than the 5-month copper, and the price difference on Tuesday reached 3 US dollars/ton.
On Tuesday, Shanghai Yangshan’s copper premium was US$60 per ton, an increase of US$8 from a week ago. This is also the highest point since March 3, indicating that China’s demand for imported copper has increased.
From a technical perspective, the 50-day moving average of $9,545 and the 100-day moving average of $9,565 constitute major upward resistance.
As for other metals, LME aluminum rose 1.3% to US$2,583 per ton, zinc rose 1.7% to US$3,001 per ton, lead rose 1.4% to US$2,290 per ton, and nickel rose 0.6% to US$18,738 per ton. Dollar.
Link to this article：Overview of LME base metals on August 2021, 08
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