CPER - Copper falls to five-week low leading industrial metals lower

2023-09-21 07:49:53 ET

• Copper prices on the London Metal Exchange fell to the lowest in five weeks Thursday, as the U.S. Federal Reserve indicated its policy would remain restrictive for longer, which lifted the dollar to a six-month high.
• The Fed may raise its benchmark overnight interest rate one more time this year, according to its updated projections, and rates kept significantly tighter through 2024 than previously expected.
• According to Reuters, benchmark three-month LME copper ( HG1:COM ) recently traded -1.9% to $8,187.50/metric ton after touching $8,171/ton, its lowest since August 17 and capping a 2.6% drop so far this week.
• ETFs: ( NYSEARCA: CPER ), ( NYSEARCA: COPX ), ( JJC ), ( JJCTF )
• Also hurting sentiment, copper inventories in LME-registered warehouses, which have been rising since mid-July, hit their highest level since May 2022.
• The discount for near-term delivery compared to the three-month copper contract rose, indicating plentiful immediate supply, closing at a four-month high $64/ton on Wednesday.
• Also on the LME, nickel was -1.4% to $19,315 after touching $19,245, its lowest since July 2022; aluminum, zinc, lead and tin all fell by 1% or more.
• Among potentially relevant stocks, Freeport McMoRan ( NYSE: FCX ) -2.3% , Alcoa ( AA ) -2.3% , BHP ( BHP ) -1.9% , ArcelorMittal ( MT ) -1.8% , Cleveland-Cliffs ( CLF ) -1.6% , Rio Tinto ( RIO ) -1.5% , Southern Copper ( SCCO ) -1.5% , Vale ( VALE ) -1.4% .

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