Copper slipped on Thursday as the dollar extended its recovery after U.S. midterm elections, with prices also pressured by a drop in China’s copper imports.
China, which consumes nearly half the world’s copper, registered a 19 percent monthly drop in copper imports in October, data showed on Thursday.
Aanalysts, however, were not too downbeat about copper’s prospects.
“There’s a Golden Week effect in (the data). October data is usually lower. I would still expect relatively high refined copper imports over the fourth quarter because the import arbitrage has been wide open,” said Colin Hamilton, head of commodities research at BMO Capital Markets.
The copper import data was part of a batch of China trade figures that showed much stronger than expected exports as shippers rushed goods to the United States to beat higher tariffs due to kick in at the start of next year.
Import growth also defied forecasts for a slowdown, suggesting that Beijing’s growth-boosting measures to support the cooling economy could be starting to have an impact.
“Two or three weeks ago … the feeling was that China wasn’t reacting quickly enough to the weaker equity markets, but now we’re getting better figures … it should be supportive (of copper) in the short term,” Hamilton said.
* PRICES: Three-month copper on the London Metal Exchange traded down 0.6 percent in official midday rings to $6,115 a tonne, while aluminium was last bid down 0.2 percent at $1,981.
* DOLLAR: The dollar rose after the U.S. midterm elections went largely as expected and investors turned their attention towards Federal Reserve policy.
* CHINA ALUMINIUM: China’s aluminium exports fell in October as sliding domestic production meant less metal was available for overseas markets.
* CHINA-U.S. TRADE: The U.S. Commerce Department said it would impose final duties on Chinese common alloy aluminium sheet products.
* BRAZIL ALUMINIUM: A Brazilian court has upheld a decision forcing aluminium producer Norsk Hydro to run its Alunorte alumina refinery, the world’s largest, at half capacity because of environmental violations.
* INDONESIA TIN: Indonesia’s refined tin exports in October fell 42 percent from the previous month after the introduction of restrictions on some sales by the country’s only tin-trading bourse.
* JAPAN METALS: Japan’s Sumitomo Metal Mining Co cut its full-year profit forecast, blaming lower than expected metal prices, reduced nickel output and the U.S.-Sino trade conflict.
* PRICES: Zinc traded up 0.6 percent at $2,470, having hit its lowest in 1-1/2 months. Lead traded up 2.1 percent to $1,968, tin was up 0.6 percent at $19,155 and nickel traded down 1.1 percent at $11,690.
