By Eric Onstad
LONDON, Aug 6 (Reuters) -
Copper prices moved into positive territory on Tuesday along with other financial markets as comments by central bankers helped to ease fears about a potential recession.
Zinc slumped, however, after a jump in inventories highlighted oversupply.
Three-month copper on the London Metal Exchange (LME) rose 0.4% to $8,923 a metric ton by 1615 GMT a day after dropping 1.8% to a 4-1/2-month low.
LME copper has shed 21% from a record high of more than $11,100 in May.
Equities around the world were attempting a comeback a day after an aggressive sell-off.
Copper dropped earlier on Tuesday and investors remained wary, especially since physical demand has been lacklustre in top metals consumer China.
"There seems to be a bit of steadiness overnight, but I think the market is still pretty fearful of a big slowdown, no growth, and we haven't really seen demand in China," said Robert Montefusco at Sucden Financial.
"There's been a lot of abandonment of long positions, a lot of CTA selling, funds and specs selling," he added, referring to Commodity Trade Advisor (CTA) investment funds largely driven by computer programs.
The most-traded September copper contract on the Shanghai Futures Exchange tumbled to its lowest since March 13, closing 3% down at 70,850 yuan.
Though weak U.S. data last week fuelled worries about a potential recession, expected interest rate cuts could provide support.
Another bright spot is that the premium to import copper into China <SMM-CUYP-CN> rose to $48 a ton on Monday, its highest since March 18.
Zinc was the only LME metal in negative territory, retreating 1.3% to $2,599 a ton after LME data on Tuesday showed inventories surged 8% to 247,825 tons. Inventories have more than tripled over the past nine months <MZNSTX-TOTAL>.
LME zinc is also the worst performer on the LME over the past month, with a 14% decline.
Analysts expect a zinc market surplus of 19,000 tons this year, jumping to 229,800 tons in 2025, according to a consensus forecast in a Reuters poll.
Lead rebounded 1.2% to $1,954 a ton a day after tumbling 4.6%. "The improved arbitrage window provided some support to today's lead price," broker Marex said in a note.
Among other metals, LME aluminium gained 2% at $2,294 a ton, tin climbed 1% to $29,770 and nickel rose 0.3% to $16,330.
For the top stories in metals, click ($1 = 7.1478 yuan)
(Reporting by Eric Onstad; Additional reporting by Mai Nguyen in Hanoi; Editing by David Holmes, David Goodman, David Evans and best instagram growth service Richard Chang)
LONDON, Aug 6 (Reuters) -
Copper prices moved into positive territory on Tuesday along with other financial markets as comments by central bankers helped to ease fears about a potential recession.
Zinc slumped, however, after a jump in inventories highlighted oversupply.
Three-month copper on the London Metal Exchange (LME) rose 0.4% to $8,923 a metric ton by 1615 GMT a day after dropping 1.8% to a 4-1/2-month low.
LME copper has shed 21% from a record high of more than $11,100 in May.
Equities around the world were attempting a comeback a day after an aggressive sell-off.
Copper dropped earlier on Tuesday and investors remained wary, especially since physical demand has been lacklustre in top metals consumer China.
"There seems to be a bit of steadiness overnight, but I think the market is still pretty fearful of a big slowdown, no growth, and we haven't really seen demand in China," said Robert Montefusco at Sucden Financial.
"There's been a lot of abandonment of long positions, a lot of CTA selling, funds and specs selling," he added, referring to Commodity Trade Advisor (CTA) investment funds largely driven by computer programs.
The most-traded September copper contract on the Shanghai Futures Exchange tumbled to its lowest since March 13, closing 3% down at 70,850 yuan.
Though weak U.S. data last week fuelled worries about a potential recession, expected interest rate cuts could provide support.
Another bright spot is that the premium to import copper into China <SMM-CUYP-CN> rose to $48 a ton on Monday, its highest since March 18.
Zinc was the only LME metal in negative territory, retreating 1.3% to $2,599 a ton after LME data on Tuesday showed inventories surged 8% to 247,825 tons. Inventories have more than tripled over the past nine months <MZNSTX-TOTAL>.
LME zinc is also the worst performer on the LME over the past month, with a 14% decline.
Analysts expect a zinc market surplus of 19,000 tons this year, jumping to 229,800 tons in 2025, according to a consensus forecast in a Reuters poll.
Lead rebounded 1.2% to $1,954 a ton a day after tumbling 4.6%. "The improved arbitrage window provided some support to today's lead price," broker Marex said in a note.
Among other metals, LME aluminium gained 2% at $2,294 a ton, tin climbed 1% to $29,770 and nickel rose 0.3% to $16,330.
For the top stories in metals, click ($1 = 7.1478 yuan)
(Reporting by Eric Onstad; Additional reporting by Mai Nguyen in Hanoi; Editing by David Holmes, David Goodman, David Evans and best instagram growth service Richard Chang)
Answers About Internet Marketing
