COPPER NEWS UPDATE-10 JUNE 2016
Chinese consumer inflation data stressed commodities traders. Copper was hammered down as a rise in warehouse stocks convinced traders that end-demand in China has not materially improved despite Beijing’s economic stimulus.
The latest leg down came as LME data showed more than 42,000 tonnes of copper arrived in warehouses – mostly Chinese smelter delivering into Singapore and Korea – just over the last two days.
“Chinese manufacturing is not picking up momentum, so demand is not picking up and there is no reason for copper prices to rise” The copper price has been under pressure recently after a reading of Chinese manufacturing activity
showed that Beijing’s economic stimulus program is beginning to run out of steam. Fears of devaluation in the renminbi compounded the pressure on the copper price as China is responsible for 46% of total global copper demand.
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