Metals: Copper supported by China trade data, inventories weigh

MMTec

13/07/2021 10:15

(Recasts, adds comment, adds London dateline)
    By Pratima Desai
    LONDON, July 13 (Reuters) - Copper steadied on Tuesday as
strong trade data from top consumer China eased worries about
demand, but climbing inventories weighed on prices as the market
waited for inflation data from the United States.
    Benchmark copper  CMCU3  on the London Metal Exchange was
little changed at $9,405 a tonne at 0909 GMT. Prices of the
metal used in power and construction have traded in a narrow
range for a few weeks now.
    "The market is waiting for clarity on inflation in the
United States and what the Fed is going to do," said
Quantitative Commodity Research analyst Peter Fertig.
    "If the Fed suggests stimulus will be withdrawn then copper
and other base metals will come under pressure."
        
    TRADE: China's exports grew much faster than expected in
June, as solid global demand led by easing lockdown measures and
vaccination drives worldwide eclipsed virus outbreaks and port
delays, while imports also beat expectations.  urn:newsml:reuters.com:*:nL1N2OP04F
    Base metals markets are also looking ahead to investment,
industrial output and GDP data from China later this week for
clues to demand prospects.
    INFLATION: U.S. consumer price inflation in June is expected
to have risen 0.5% from May and 4.9% from a year earlier. A miss
on either side could move the dollar, which would feed into
metals markets.
    A higher U.S. currency makes dollar-priced commodities more
expensive for holders of other currencies, weighing on demand.
 FRX/ 
    INVENTORIES: Stocks of copper  MCUSTX-TOTAL  in LME
registered warehouses at 220,575 tonnes have risen 40% over the
past three weeks. On warrant stocks -- material available to the
market -- at 203,575 are at their highest since May last year.
    OTHER METALS: Aluminium  CMAL3  was up 0.2% at $2,495 a
tonne, zinc  CMZN3  was flat at $2,949, lead  CMPB3  was down
0.8% at $2,313, tin  CMSN3  was little changed at $32,090 and
nickel  CMNI3  climbed 0.3% to $18,735.
    

 (Reporting by Pratima Desai; editing by Kirsten Donovan)
 ((Pratima.desai@thomsonreuters.com))
 
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