Copper prices fall on US inflation data

Copper fell on Friday after US consumer prices rose in line with expectations, limiting investors’ tendency to buy raw materials as a hedge against inflation.

Three-month copper on the London Metal Exchange (LME) lost 0.4% to $9,498 a ton.

While US inflation data showed the biggest year-over-year increase in more than 39 years, many investors braced for much higher numbers.

Antaike Research Center said major copper smelters in China increased production by 1.3% in November from the previous month, as fewer producers carried out maintenance work and power supply shortages diminished.

Zinc on the London Metal Exchange rose 0.5% to $3,328 a ton, despite LME stock data showing an increase of 14,025 tonnes to 164,425 tonnes, halting the outflow trend for several months.

Aluminum on the London Metal Exchange lost 0.5% to $2612.50 per ton, nickel fell 0.3% to $19,810, tin fell 0.2% to $39,435, but lead rose 0.4% to $2,293.50.

Gold rose as its appeal as a haven was boosted by rising US consumer prices. The precious metal rose 0.5% to $1,783.61 an ounce.

Leave a Reply

Your email address will not be published. Required fields are marked *