On Friday, the London Metal Exchange (LME) copper futures fell because the strong US employment data pushed the US dollar exchange rate higher, which made the metal quoted in the US dollar more expensive for buyers of other currencies
As of 1600 Greenwich, the London benchmark three-month copper fell 0.2% to $9,472.5 per ton.
On the weekly chart, 3-month copper fell by US$252.5 or 2.60%, mainly due to concerns about weakening demand in China, the number one consumer. In the previous week, LME Copper rose by US$190.5, or 2.00%.
Copper is used in industries such as power and construction, and is widely regarded as an indicator of the health of the global economy.
On May 5th, the London copper futures had reached an all-time high of US$10, which was nearly 10,747.5% higher than the price at the end of 2020.Since then, the price of copper has fluctuated downward, mainly because of the high copper price affecting the demand of downstream companies and the concern that China will strengthen its regulation of bulk commodities. The Fed may raise interest rates early, which will also have a negative impact on copper prices.
However, so far this year, copper prices have still risen by more than 20%, as green transition needs and electrification drive additional growth in copper demand, and major copper-producing countries face the threat of supply disruptions.
On Friday, copper futures rose for a while because news broke that the union of Escondida, Chile, the world’s largest copper mine, called on workers to prepare for a strike.
Analysts said that it is currently in an uncertain stage.Although the economy has resumed growth, the delta mutant virus has brought some questions.However, in the long run, demand for infrastructure and insufficient investment in new mines will support higher copper prices.
On Friday, the U.S. Dow Jones and Standard & Poor’s 500 indexes briefly hit record highs.
The U.S. dollar also posted its biggest one-day gain since June on Friday, as employment data exceeded expectations.
In Germany, industrial output unexpectedly fell again in June.
In China, surveys show that China’s strong export growth may slow in July.
Previously released data showed that the growth rate of Chinese factory activity in July hit the slowest level in 7 months.
On Friday, China reported 124 new confirmed cases of the new crown, which is the highest single-day number since the outbreak of the latest wave.
The closing quotations of other metals include, LME three-month aluminum fell 0.4% to US$2,579 per ton; zinc fell 1.6% to US$2,981 per ton; nickel fell 1.4% to US$19,210 per ton; lead fell 3.4%. Quoted at US $2,281 per ton.Only tin futures bucked the trend and rose 0.4% to US$34,750 per ton.