LME Base Metals Close Lower

COPPER futures have closed lower on the London Metal Exchange, remaining down on the day after poor economic data out of China. THE LME’s three-month copper contract was down 1.1 per cent at $US6,631.00 a metric ton at Tuesday’s PM kerb close. According to the Chinese National Bureau of Statistics, the average price of new […]

COPPER futures have closed lower on the London Metal Exchange, remaining down on the day after poor economic data out of China.
THE LME’s three-month copper contract was down 1.1 per cent at $US6,631.00 a metric ton at Tuesday’s PM kerb close.

According to the Chinese National Bureau of Statistics, the average price of new homes in 70 Chinese cities in October was down 0.8 per cent.The Chinese data showed that the property sector is continuing to cool, said Daniel Briesemann at Commerzbank, and “this in turn could drag down the entire economy”.As China is the biggest global consumer of the red metal–and base metals more generally, price movements often follow the country’s economic trajectory.

Poor economic health signals falling demand and declining prices.This is the sixth consecutive monthly new-homes price decline, and this time the potential repercussions are more serious, analysts say.

“This time it was not only a fall in prices in a month-on-month comparison, but also in a year-on-year comparison, which is probably more important. So, this has given rise to new concerns,” said Briesemann.Year-on-year, the average price of new homes fell 2.5 per cent in October, after a 1.1 per cent decline in September, which was the first annual decline in almost two years.All the base metals were down on the day.

Aluminium closed down 0.9 per cent at $US2,011.00 a ton, zinc closed 0.4 per cent lower at $US2,248.00 a ton, nickel fell 1.0 per cent to finish at $US15,650.00, lead closed down 1.0 per cent at $US2,024.00 a ton, and tin closed down 0.6 per cent at $US19,600.00.

SHARE
 

Share On Stumble

Comments

 characters available
*Please refer to our comment policy before submitting
Discussions