METALS-Copper skids on worries over Chinese property crisis

By Reuters / November 09, 2021 / www.kitco.com / Article Link

(Updates prices) By Eric Onstad LONDON, Nov 9 (Reuters) - Copper prices retreated on Tuesdayon concerns that a deepening debt crisis in China's propertysector will curb demand.

Three-month copper on the London Metal Exchange(LME) slipped 0.9% to $9,556 a tonne by 1700 GMT, reversingdirection after a 1.3% gain on Monday.

"China is the big unknown right now. The trade data was onthe positive side, but we've got this property crisis continuingto spread and expand," said Ole Hansen, head of commoditystrategy at Saxo Bank in Copenhagen. Chinese developer Kaisa told a Chinese government think-tankthat the business needs help to pay investors, workers andsuppliers after the real estate sector was hit by a liquiditysqueeze. The real estate sector accounts for a large share of copperconsumption and China is the world's biggest user of the metal. Energy shortages in China and electricity price increases inEurope also threatened to dent demand from metal users. The U.S. Federal Reserve warned on Monday of the potentialfor a drop in investor risk appetite. Copper's downside was limited, however, as continuedinventory declines raised the prospect of shortages. * Nickel prices in 2022 are expected to fall from thisyear's multi-year highs, Chinese research house Antaike said onTuesday, with the global market projected to swing into asurplus.* LME copper inventories fell to 109,550tonnes, their lowest since March and down by more than half overthe past two months. * On-warrant LME aluminium stocks - metal notearmarked for delivery - tumbled to the lowest since December2005 at 599,925 tonnes.

* LME aluminium lost 1.7% to $2,562 a tonne, nickel shed 1.2% to $19,410, lead retreated 1% to$2,340.50, but zinc gained 0.3% to $3,281.50 and tin was up 0.2% at $37,405. * For the top stories in metals and other news, click or ($1 = 6.3980 yuan) (Additional reporting by Mai Nguyen in HanoiEditing by Kirsten Donovan and David Goodman)

LME price overview COMEX copper futures All metals news All commodities news 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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