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Saturday 17

November, 2018 1:04 AM



Copper price slips on profit-taking

Copper price slips on profit-taking

Base metals have slipped lower overnight, with the losses led by copper, after investors decided to take profits.

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By AAP 06.11.2018 07:44 AM

Copper led base metals lower as investors took profits after the metal used in power and construction touched a two-week high on Friday.

Three-month copper on the London Metal Exchange ended down 1.5 per cent on Monday at $US6,191.50 a tonne, having climbed on Friday to its highest since October 22 at $US6,315.

"There are probably some market players taking profits off the table," said Natixis analyst Bernard Dahdah.

Copper soared on Friday on signs that trade tensions were easing after optimistic comments from the United States and China.

Chinese President Xi Jinping on Monday added to that positivity by promising to lower tariffs, broaden market access and import more from overseas, but his comments failed to impress the market.

"(President Xi's) reiteration of plans to further cut taxes, import $US30 trillion of goods over the next 15 years, coupled with a distinct lack of details around any further stimulus measures, leaves the market disappointed," Marex Spectron analyst Alastair Munro said in a note.

US President Donald Trump said on Monday that China has hurt the United States economically but was ready to make a deal on trade and he is open to a fair agreement.

China's services sector chalked up its slowest growth in more than a year last month as new orders dried up, a private survey showed, suggesting a further loss in economic momentum as 2018 draws to a close.

Russian aluminium giant Rusal has appointed a chief executive, it said on Monday, after reporting third-quarter recurring net profit up 42 per cent from the previous quarter as sanctions imposed by Washington were postponed.

On-warrant copper stocks available to the market in LME-approved warehouses edged down to 100,525 tonnes after jumping 78 per cent, or 44,950 tonnes, on Friday.

In copper, concern about nearby shortages on the LME market have created a premium of $US31 a tonne for cash over three-month contracts.

This compares with a discount of $US47 at the end of October.

"There were stocks delivered last week that some people didn't expect ... players buy and borrow in fairly thin conditions," one trader said.

Aluminium ended 0.1 per cent up at $US1,975 a tonne, zinc eased 0.7 per cent to $US2,521, lead fell 2.8 per cent to $US1,935, tin ended down 0.1 per cent at $US19,075 and nickel fell 1.5 per cent to $US11,750.

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