METALS-Copper slides as equity markets rout rattles investors

By Kitco News / October 26, 2018 / www.kitco.com / Article Link


* LME copper stocks at lowest in nearly 13 years
* Global equities head for worst week in more than 5 years
* Nickel hits lowest since Dec, aluminium lowest since lastAugust (Adds closing prices, details)By Maytaal AngelLONDON, Oct 26 (Reuters) - Copper fell 1 percent on Fridayas global equities headed for their worst week in more than fiveyears, overshadowing a supply shortage of the metal building inthe market.Available London Metal Exchange copper inventories fell totheir lowest in nearly 13 years, while cash copper traded at itshighest premium to the three-month future in nearly three years. Still, investors are spooked about Sino-U.S. tradefrictions, a mixed bag of U.S. corporate earnings, FederalReserve rate increases and an Italian budget dispute. Aluminium hit its lowest in more than a year while nickelslumped to its weakest since late December. Higher than expectedU.S. GDP data was not enough to assuage investor nerves."When you've had an equity market selloff like we've had inthe past few weeks, metals are not going to benefit," said ColinHamilton, head of commodities research at BMO Capital Markets."There should be a relief rally in base (metals) for theyear-end as Chinese economic data improves ... because ofstimulus ... but a lot depends on financial market conditionsstabilising," Hamilton added, referring to policy measures inChina designed to stimulate the economy.



* COPPER PRICE: Three-month copper on the London MetalExchange ended down 1.1 percent at $6,160 a tonne,clocking its fourth weekly drop in five.
* SUPPLY: Miner and commodities trader Glencore onFriday reported a 12 percent rise in copper production so farthis year. Other major miners reporting this month - BHPBilliton and Rio Tinto - have signalled lower copper output.
* OPEN INTEREST: Market open interest on Shanghai copperfell to 495.476 lots on Thursday, the lowest since Feb. 9, 2017,in a sign that money is leaving the market.


* OTHER METALS: LME nickel hit its weakest sincelate December at $11,810 and ended down 2.1 percent at $11,900,while aluminium hit its weakest since last August at$1,975 but closed up 0.2 percent at $1,998."Aluminium production appears to be being cut back in Chinadue to the current weak margins," Commerzbank analysts said in anote. "Lower production, which should result in lower Chineseexports, is likely to shore up aluminium prices. The LME (price)has nonetheless dipped below $2,000 per tonne."


* STOCKS: Shanghai Futures Exchange lead inventories plunged 44.6 percent from a week earlier to 6,139tonnes, the exchange said on Friday, the lowest since January2016.
* OTHER METALS: Lead ended down 0.7 percent at$1,998, zinc closed up 0.6 percent at $2,652, while tin ended flat at $19,300.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Tom DalyEditing by Kirsten Donovan and David Holmes)

Messaging: maytaal.angel.thomsonreuters.com@reuters.net)))

LME price overview COMEX copper futures Base metals news All metals news All commodities news Metals diary Foreign exchange rates SPEED GUIDES)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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