METALS-Shanghai copper slips for second day as U.S.-China tensions simmer

BEIJING, (Reuters) – Shanghai copper prices fell for a second day on Monday, as investors focused on tensions between the United States and top metals consumer China, whose annual parliament meeting continues this week, and as supply constraints eased.

While copper stocks in Shanghai Futures Exchange warehouses dropped at the fastest rate in nearly eight months last week,

China’s copper consumption is weakening as a backlog of factory orders clears and the call on refined metal to replace limited

scrap supply fades, Jinrui Futures said.

    “The conflict between China and the United States around Huawei and Hong Kong is also escalating,” the brokerage added in

a note.

    Supply-side support for copper prices is also weakening with the resumption of some mining in South American countries after

coronavirus-related closures, Jinrui Futures added.

    The London Metal Exchange is closed on Monday for the Spring Bank Holiday and reopens on May 26. 

    FUNDAMENTALS

    * COPPER: The most-traded July copper contract on the ShFE fell as much as 1.2% to a one-week low of 43,210 yuan ($6,054.36) a tonne, before closing 0.2% lower at 43,650 yuan.

    * COPPER: China’s Tongling Nonferrous will in July start up a new 400,000 tonnes per year copper smelting

project in Inner Mongolia after shutting down an older plant, a government statement said.

    * STRIKE: Workers at China Molybdenum’s Tenke Fungurume copper-cobalt mine in Democratic Republic of Congo ended a

one-day strike on Sunday after agreeing a compromise with management over compensation for working in isolation.

    * OTHER METALS: The ShFE complex ended mixed, with nickel closing down 2% and zinc ending 0.2% lower,

while lead closed up 1.7%, aluminium gained 0.3% and tin finished flat.

    PRICES    

                                          CLOSE

 Most active ShFE copper                  43650

 Most active ShFE aluminium               12835

 Most active ShFE zinc                    16330

 Most active ShFE lead                    14450

 Most active ShFE nickel                 100640

 Most active ShFE tin                    133310

 ($1 = 7.1370 Chinese yuan)

 (Reporting by Tom Daly, Editing by Sherry Jacob-Phillips)

Source: Reuters