Summary: Copper prices fell on Thursday as escalating tensions between the United States and China stoked investor unease.
Copper prices fell on Thursday as escalating tensions between the United States and China stoked investor unease.
At 10:08 Beijing time, three-month copper on the London Metal Exchange (LME) fell $14.5, or 0.22%, to $6,471.50 per metric ton.
The most-traded September copper contract on the Shanghai Futures Exchange fell 570 yuan, or 1.09%, to 51,860 yuan per metric ton.
Chinese Foreign Ministry spokesperson Wang Wenbin said at a regular press conference on July 22 that the United States suddenly demanded that China close its consulate general in Houston on July 21. This is a unilateral political provocation by the U.S. against China, a serious violation of international law and basic norms of international relations, a serious breach of the relevant provisions of the Sino-U.S. consular convention, and a deliberate attempt to undermine Sino-U.S. relations. It is extremely unreasonable and high-handed. China strongly condemns this. China urges the U.S. to immediately rescind the erroneous decision. Otherwise, China will make a legitimate and necessary response.
Among other metals, LME three-month aluminum slipped $4, or 0.24%, to $1,687 per metric ton, while three-month nickel fell $36, or 0.27%, to $13,100 per metric ton.
Norwegian producer Hydro said on Wednesday that global primary aluminum consumption fell 9% year on year in the second quarter, hit by the COVID-19 pandemic.
In its second-quarter earnings report, the company said global primary aluminum consumption fell 9% from the second quarter of 2019, mainly driven by a roughly 28% decline in consumption outside China, while Chinese consumption rose 5%.
The most-traded October nickel contract on the Shanghai Futures Exchange fell 2,140 yuan, or 1.99%, to 105,220 yuan per metric ton. The most-traded August lead contract fell 205 yuan, or 1.36%, to 14,875 yuan per metric ton.
Indonesian state-owned miner PT Aneka Tambang (Antam) said in a statement on Wednesday that it produced ferronickel containing 6,447 metric tons of nickel and sold ferronickel containing 6,867 metric tons of nickel in the second quarter.
SMM data showed that China's domestic secondary lead prices rose to a one-week high of 14,875 yuan per metric ton.
The LME cash premium over three-month copper rose to $7 per metric ton, the highest since March 2019, due to lower copper inventories.
Asian stock markets were expected to come under pressure on Thursday as a new diplomatic dispute between China and the U.S. rattled investors.