Copper fell 1.5 percent on Friday as global stocks headed for their worst week in more than five years, overshadowing worries over the sharp shortage of supply building in the market.
LME copper stocks at lowest in nearly 13 years
Available London Metal Exchange copper inventories fell to their lowest in nearly 13 years while cash copper traded at its highest premium to the three month future in nearly three years.
Still, investors are spooked about Sino-U.S. trade frictions, a mixed bag of U.S. corporate earnings, Federal Reserve rate increases and an Italian budget dispute.
“When you’ve had an equity market selloff like we’ve had in the past few weeks, metals are not going to benefit,” said Colin Hamilton, head of commodities research at BMO Capital Markets.
“There should be a relief rally in base for the year end as Chinese economic data improves … because of stimulus … but a lot depends on financial market conditions stabilizing.”
- COPPER PRICE: Three-month copper on the London Metal Exchange was down 1.6 percent at $6,125 a tonne by 1030 GMT, heading for a fourth weekly drop in five.
