London Metal Exchange copper prices saw little movement in
early Asian trading on Thursday April 26, as China demand
concerns continued to dominate market sentiment.
Helped by the unchanged low benchmark interest rate policy from
the Federal Reserve, three-month copper opened at a high price
of $8,207 per tonne, before sliding to $8,175 per tonne by
02:27 London time.
The red metal moved in a tight range of $8,164-$8,216 per
"The London market is stronger than the Shanghai market at the
moment, and China domestic demand worries are putting pressure
on copper prices," Fang Junfeng, base metals analyst with
Investors' worries on China demand increased in line with the
slowdown of China economic growth, and market confidence was
hit after the world's largest copper consumer entered the
buying season, he added.
"Downstream enterprises are not willing to buy now, even in the
buy season," Fang said, adding that most already had high
inventories after upping their purchases in the first quarter
on an optimistic outlook.
A second Shanghai analyst agreed, noting that demand from major
copper end users was weak at the moment.
"Sales growth of white electrical appliances has fallen
sharply, and the real estate market downturn has exacerbated
consumers' wait-and-see mood," he added.
On the Changjiang Nonferrous Market, copper inched up by 150
yuan ($24) to 57,750-57,800 yuan per tonne for the session.
Shanghai Futures Exchange July copper opened at 57,980 yuan per
tonne, slipping just 10 yuan to 57,970 yuan per tonne by 11:08
Other base metals were mixed in the early Asian session.
Three-month LME aluminium was flat with its open at $2,075 per
tonne, lead down $2 from its open at $2,083 per tonne, while
zinc fell $1 to $2,006 per tonne.
Nickel rose by $25 from its open at $17,675 per tonne, while
tin was untraded in the morning.