Copper rebounds as inventories and stock markets stabilise
XLB•Copper gained 1.3% to $14,265 a metric ton as stock markets stabilised and the build-up of inventories slowed. LME stocks rose by 800 metric tons on Friday, while Shanghai-registered inventories fell 26.5% for the week.
1. Copper prices recover
Three-month copper on the London Metal Exchange gained 1.3% to $14,265 a metric ton in official open-outcry trading on Friday, after falling 1.9% to a five-week low in the previous session. Metals markets were supported as a sell-off in global technology shares eased.
2. Inventory concerns remain
LME copper stocks rose by 800 metric tons on Friday, after increasing by a fifth over the previous week to 273,750 tons. Shanghai Futures Exchange-registered copper inventories fell 26.5% for the week. Investors remained concerned about copper stocks in the United States and the risk that they could be re-exported into other markets.
3. Other metals mixed
Nickel fell 1.4% to $15,890 a ton as traders awaited clearer signals from Chinese companies considering coordinated output cuts at their Indonesian operations. The International Nickel Study Group forecast a small global surplus this year, reversing an earlier deficit forecast. Aluminium dipped 0.3%, while zinc, lead and tin rose.
