Copper drops to $ 10,199 per tonne as China’s coal price drops
The price of copper fell on Wednesday as China’s pledge to lower coal prices allayed concerns about a disruption in the supply of metals and as investors turned profits after recent large gains.
Copper CASH on the London Metal Exchange plunged 7.2% overnight, wiping out Monday’s gains .
China’s National Development and Reform Commission said it was evaluating measures to intervene on prices and had “zero tolerance” for those who spread false information or collude in the market.
The agency added that China plans to increase its coal production to 12 million tonnes per day and prioritize fuel for deliveries via ports and railways.
The electricity crisis in China and increases in electricity prices in Europe have raised fears of shortages in the supply of base metals, some of which are already experiencing low stocks over several years .
Last week, the price of zinc jumped 20.4%, copper 9.8% and aluminum 6.9%.
Copper for December delivery fell 1.4% in the New York Comex market on Wednesday, reaching $ 4.6360 per pound ($ 10,199 per tonne).
The most-traded copper contract in November on the Shanghai Futures Exchange fell 3.2% to 72,910 yuan ($ 11,406.80) per tonne. Zinc fell 6.8% to 25,320 yuan per ton ($ 3,962.44).
