Copper edges off 2-month high as prices weigh on demand
COPX•Copper eases from two-month high
Copper prices in London edged down from the previous day's highs but remained firm on Wednesday, even as the recent rally was capped by high prices that threatened to dampen demand.
Benchmark three-month copper CMCU3 on the London Metal Exchange was down 0.24% at $14,033 a metric ton by 0300 GMT. The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 rose 0.75% to 107,120 yuan ($15,877.39) a ton.
Prices passed a two-month high on Tuesday, surmounting the psychological level of $14,000 a ton for the first time since early June.
High prices start to curb demand
High copper prices are beginning to weigh on demand, raising questions about the strength of seasonal demand in the second half of the year, analysts from Chinese broker Everbright Futures said in a note.
The Yangshan copper premium SMM-CUYP-CN, an indicator of physical demand in the largest consumer China, ticked down to $110 a ton on Tuesday, according to data provider SMM.
Other London and Shanghai metals mostly mixed
Among LME metals, aluminium CMAL3 ticked 0.05% higher, zinc CMZN3 ticked 0.14% higher, lead added 0.32%, nickel lost 0.4% and tin dipped 0.28%.
