Copper fluctuates in LME on Chinese cues

LONDON (Commodity Online) : Further tightening of monetary policy and less-than-forecast trade surplus in China has resulted in price fluctuations in LME for copper.

Three-month copper on the London Metal Exchange climbed 0.5 percent to touch $9,459 a metric ton, subsequent to falling 0.4 percent earlier. It was seen trading little changed at $9,402 by 12:05 p.m. Singapore time, reported Bloomberg.

April contract for copper in the Shanghai Futures Exchange climbed 0.6 % to 70,190 yuan ($10,585) a ton, cutting down an earlier advance of 1.3 % while Copper on the Comex in New York jumped 0.4 % to $4.2980 a pound, after climbing 1.1 % earlier.

The central bank of China ( People’s Bank of China) has asked its banks to increase lending rates which may increase by 50 basis points, further in time, if inflation continue to soar.

This had impacts on copper imports: 344,558 tons in December, down by 7039 tons compared to the previous months.

Belying the median estimate of expert-participated surveys that pegged Chinese trade surplus at $20.8 billion, the actual surplus stood at $13.1 billion in December, short of November’s $22.9 billion. This too has added to the fluctuations in LME.

Aluminum, zinc and lead declined, with Aluminium in London dropping 0.3 % to $2,510 a ton, and zinc declining 1.4 percent to $2,410 a ton, even as lead paring down 0.5 % to $2,635.50 a ton.

Tin dropped 0.2 % to $26,400 a ton, while nickel was unchanged at $24,225 a ton.