METALS-Copper stuck in a rut as China holiday slackens demand
(Updates with official prices)
LONDON, Jan 26 (Reuters) - Copper prices barely budged
for a seventh consecutive session on Thursday, with the
week-long Lunar New Year holiday in top consumer China reducing
market activity and demand for metal.
A weakening dollar and hopes for stronger Chinese demand
after the nation ditched its zero-COVID policies have pushed up
copper prices by more than 20% since November, but momentum
stalled as Chinese markets closed.
Three-month copper on the London Metal Exchange
(LME) was almost unchanged at $9,317 a tonne in official
open-outcry trading. Markets were closed in India and Australia
as well as China.
"The biggest thing many people are looking at is the China
reopening," said Amelia Xiao Fu, head of commodity market
strategy at Bank of China International, adding that industrial
activity could start to recover in the coming weeks.
Fears of supply disruption in top copper producers Chile and
Peru have added to concerns that additional demand from China's
reopening could stretch an already tight market.
Freeport-McMoRan Inc (FCX), which operates seven mines in
the United States, also warned on Wednesday that its struggle to
find workers is limiting its copper output.
In other metals, zinc gained 0.6% to $3,470 a tonne
after touching $3,499.50, its highest price since the end of
August. Inventories in LME-registered warehouses at 18,625
tonnes are down more than 90% from last April and the lowest in
decades.
After posting gains in the previous four sessions, aluminium
slipped 0.7% to $2,640 a tonne after stocks in the LME
warehouse system jumped by 40,200 tonnes to 419,425 tonnes.
Lead gained for a third straight session and was up
1.2% at $2,187 a tonne and nickel eased 0.5% to $29,025.
Tin rose 1.6% to $31,350 after reaching $31,570,
the highest level since June.
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(Reporting by Swati Verma; Additional reporting by Brijesh
Patel and Peter Hobson; Editing by David Goodman and Paul Simao)
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