Copper ends two day rally on Chinese inflation data
October 15, 2014 6:48 am
Copper declined for the first time in three days behind the release of inflation data from China, the largest user of the metal in the world, that showed the slowest growth in over four years, damping demand.
Futures for the commodity with a delivery date in three months fell by as much as 0.5% after reaching its highest in three weeks yesterday. It was trading late morning Hong Kong time at a price per metric ton of $6,773.50 on the London Metal Exchange (LME). Copper on the New York market for December delivery declined by 0.4% to a price per pound of $3.065, while in Shanghai it increased by 0.5% to 48,320 yuan or $7,887 per ton.
China’s National Bureau of Statistics released a report today that showed the an advance of 1.6% in the country’s consumer price index for the month of September. The figure fell below both estimates of analysts and the 2% rate achieved in August. A separate measure for producer prices also fell by a larger than expected margin to continue its drought for an increase since January 2012.
Senior fund manager Tetsu Emori from Tokyo’s Astmax Asset Management Inc. says that, “The inflation number is very, very low. It seems the demand side is much weaker than we expected.”
Zinc and aluminum dropped in value on the LME, while tin advanced and nickel and lead remained mostly unchanged.
The material has been provided by InstaForex Company – www.instaforex.com
Copper declined for the first time in three days behind the release of inflation data from China, the largest user of the metal in the world, that showed the slowest growth in over four years, damping demand.
Futures for the commodity with a delivery date in three months fell by as much as 0.5% after reaching its highest in three weeks yesterday. It was trading late morning Hong Kong time at a price per metric ton of $6,773.50 on the London Metal Exchange (LME). Copper on the New York market for December delivery declined by 0.4% to a price per pound of $3.065, while in Shanghai it increased by 0.5% to 48,320 yuan or $7,887 per ton.
China’s National Bureau of Statistics released a report today that showed the an advance of 1.6% in the country’s consumer price index for the month of September. The figure fell below both estimates of analysts and the 2% rate achieved in August. A separate measure for producer prices also fell by a larger than expected margin to continue its drought for an increase since January 2012.
Senior fund manager Tetsu Emori from Tokyo’s Astmax Asset Management Inc. says that, “The inflation number is very, very low. It seems the demand side is much weaker than we expected.”
Zinc and aluminum dropped in value on the LME, while tin advanced and nickel and lead remained mostly unchanged.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: