Reuters, October 1-London copper prices rose on Friday, but will fall on a weekly basis as investors reduce their risk exposure amid widespread power restrictions in China and the imminent debt crisis of the real estate giant China Evergrande Group.
As of 0735 GMT, three-month copper on the London Metal Exchange rose 0.5% to US$8,982.50 per ton, but it will fall 3.7% weekly.
Fitch Solutions stated in a report: “As we continue to pay attention to the situation in China, especially Evergrande’s financial problems and severe power shortages, the two biggest developments, we emphasize that our metal price forecast risks have risen sharply. .”
China’s power shortage prompted analysts to downgrade the growth prospects of the world’s largest metal consumer, and its factory activity unexpectedly contracted in September, partly due to restrictions.
An ANZ Bank analyst said in a report: “Although the power crisis may have a mixed impact on the supply and demand of commodities, the market is paying more attention to the loss of demand caused by the slowdown in economic growth.”
Risk sentiment is still tepid because Evergrande, which is tightly funded, has not taken on some offshore debt, raising concerns that its plight may spread to the financial system and reverberate globally.
LME aluminum rose 0.4% to US$2,870.50 per ton, nickel fell 0.5% to US$17,840 per ton, zinc rose 0.3% to US$2,997 per ton, and tin fell 1.2% to US$33,505 per ton.
LME lead was almost flat at US$2,092 per ton, hovering near the lowest point since US$2,060 per ton touched in the previous trading day on April 26.
* The government statistics agency INE said on Thursday that due to declining ore grades and labor strikes at major deposits, the world’s largest metal producer Chile’s copper output fell 4.6% year-on-year in August.
* CU-STX-SGH copper stocks on the Shanghai Futures Exchange fell to 43,525 tons on Thursday, the lowest level since June 2009, alleviating the drop in copper prices.
* For headlines about metals and other news, please click or (Reported by Mai Nguyen in Hanoi; Edited by Ramakrishnan M.)