London copper heads for worst week in a year on slowdown fears


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London copper prices languished near

16-month lows on Friday and looked set to post their biggest

weekly drop in a year, as rapid interest rate hikes and weak

economic readings raised recession fears.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange

was up 0.1% at $8,421 a tonne, as of 0237 GMT, after dropping to

its lowest since February 2021 at $8,326 on Thursday. The

contract was down 6% for the week.

* The most-traded July copper contract in Shanghai

fell 3.3% to 64,220 yuan ($9,590.51) a tonne and was down 7.8%

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for the week – its largest weekly fall since March 2020.

* The U.S. Federal Reserve’s commitment to reining in

40-year-high inflation is “unconditional,” its chair Jerome

Powell told lawmakers on Thursday, even as he acknowledged that

sharply higher interest rates may push up unemployment.

* Euro zone business growth has slowed significantly in June

as consumers concerned about soaring bills opted to stay at home

and defer purchases to save money, a survey showed.

* Union leaders at Chile’s state-owned mining firm Codelco,

the world’s largest copper producer, reached an agreement with

the company to end a national strike over the decision to close

a smelter located in a highly polluted area.

* Mainland China reported 143 new coronavirus cases for June

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23, compared with 135 new cases a day earlier. COVID

restrictions in China have battered the country’s economy and

manufacturing sector.

* The global zinc market moved to a surplus of 10,900 tonnes

in April from a revised deficit of 31,700 tonnes a month

earlier, data from the International Lead and Zinc Study Group

showed.

* The LME said on Thursday it had appointed management

consultants Oliver Wyman to carry out an independent review of

the events that led to a week-long suspension of nickel trading

in March.

MARKETS NEWS

* Stocks and bonds were both headed for their first weekly

gain in a month as investors wagered on central banks bringing

inflation to heel, though growth fears dragged on commodities.

DATA/EVENTS (GMT)

0600 UK Retail Sales MM/YY May

1400 US U Mich Sentiment Final Jun

1400 US New Home Sales-Units May

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminum

Most active ShFE aluminum

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

($1 = 6.6962 Chinese yuan)

(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu

Sahu)

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