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BEIJING, April 21 (Reuters) – Copper prices dipped on Friday and were set for a weekly drop, as U.S. economic data raised fears about a recession that could darken the demand outlook for the metal.
Three-month copper on the London Metal Exchange CMCU3 slid 0.2% to $8,867.50 a tonne by 0233 GMT. The contract has lost 1.7% so far this week.
The most-traded May copper contract on the Shanghai Futures Exchange SCFcv1 fell 0.9% to 68,860 yuan ($10,002.61) a tonne.
Copper prices, often seen as an economic bellwether, were weighed down by latest U.S. data showing a loss of labor market momentum, and slumping retail sales and manufacturing activity.
The dollar was eyeing its first weekly gain in more than a month as bets of another rate hike from the U.S. Federal Reserve in May firm. However, soft economic data pointing to a slowing U.S. economy capped the dollar’s gains.
A stronger dollar makes the greenback-priced metal less affordable for buyers holding other currencies.
With a slowing economic outlook expected to put pressure on copper prices in the second half of 2023, record-low inventories, supply constraints and expected demand growth in the medium term from green transition will likely deliver sustained price volatility, analysts at National Australia Bank said.
LME aluminium CMAL3 added 0.1% at $2,424 a tonne and zinc CMZN3 nudged up 0.1% to $2,773, while lead CMPB3 eased 0.4% to $2,144.50 and nickel CMNI3 slid 0.6% to $24,905.
SHFE aluminium SAFcv1 declined 0.8% to 18,970 yuan a tonne, nickel SNIcv1 tumbled 2.5% to 190,430 yuan, lead SPBcv1 slipped 0.6% to 15,315 yuan and tin SSNcv1 fell 2.7% to 212,690 yuan, while zinc SZNcv1 gained 0.1% at 22,110 yuan.
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($1 = 6.8842 Chinese yuan)
(Reporting by Siyi Liu and Dominique Patton; Editing by Subhranshu Sahu)
((Siyi.Liu@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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