Metals-Copper falls, set to snap six-week win streak on demand concerns
XME•Copper weakens on demand worries
Copper declined on Friday and was set to snap its longest run of weekly gains since 2020, as it and the wider industrial metals complex were weighed down by concerns about demand prospects.
Benchmark three-month copper CMCU3 on the London Metal Exchange was down 0.56% at $14,069 a metric ton by 0300 GMT. The metal is set to end the week near where it started, after a run of six consecutive weekly gains.
The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 edged 0.33% lower to 107,460 yuan ($15,935.82) a ton.
There are concerns about metal demand prospects, even as inflationary pressures have cooled and interest-rate fears have receded.
"Demand for base metals may appear resilient, but we still think it is questionable if it can sustain the same strong momentum given how quickly asset prices have accelerated while wage growth is somewhat subdued," Fastmarkets analyst Andy Farida said.
Benign U.S. inflation data has helped reduce the likelihood of a U.S. Federal Reserve rate hike next month, which could have weighed on growth-dependent industrial minerals like copper by dampening economic activity.
Interest rate traders are pricing in a 41% chance the Fed will raise rates at its September meeting, down from 44% last Friday, according to the CME's FedWatch tool.
Aluminium leads losses as other metals also decline
Aluminium was the biggest loser on Friday. Prices for the light metal on the LME CMAL3 fell by 0.98% to end the week 1.42% down. On the SHFE SAFcv1, the price fell by 1.28% to end the week 0.64% lower than it started.
Supply recovery prospects from the Middle East relieved some expected tightness and alumina production at Norsk Hydro's NHY.OL Alunorte refinery in Brazil started scaling back up on Thursday, the company said, after a temporary output reduction that supported prices.
