The reopening of Chinese markets after the three-day Dragon Boat Festival was the first chance to assess domestic sentiment following poor Chinese trade figures released over the weekend. Asian traders initially took the opportunity to pick up metals, but this was short-lived and selling set in on the move into European trading hours.
LME three-month copper was 0.7% lower on the day at $7068.50 a metric ton. Aluminum fell less, down 0.3% at $1,859 a ton. Aluminum was the last in the group to relinquish its gains, finding support from a force majeure declaration from Norsk Hydro at its Alunorte alumina refinery in Brazil due to power shortages.
Indian Copper June expiry was trading at Rs 410 per kg, down 0.33 percent. The prices tested a high of Rs 417 per kg and a low of Rs 409.35 per kg. Indian Rupee tested levels of 57.98, down 0.36 percent. This was bringing some support for Rupee.
The declaration saves miners from having to pay fines if they are unable to fulfill shipment commitments. Analysts at Triland said as alumina can't be stored easily this disruption should feed through the aluminum supply chain relatively quickly, if no alternative sources can be found.
Jitters regarding the health of the global economy and thus the outlook for industrial metals demand lingered in the market, weighing down prices.
Source by Commodity Insights
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