COM - Copper slumps to lowest since January amid weak China economic recovery

2023-05-11 09:25:15 ET

Prices for copper and other base metals slumped to multi-month lows Thursday, after inflation data from China added to concerns over the strength of the country's economic recovery.

China's consumer price index rose at its slowest pace since early 2021, which analysts say highlights the broader economy's struggles to ramp up after the lifting of COVID curbs in December.

The dollar index also is rising, adding pressure on dollar-priced metals.

According to Reuters, benchmark copper ( HG1:COM ) on the London Metal Exchange recently -1.5% at $8,347.50/metric ton, after touching $8,321/ton, its lowest level since January 5.

Copper inventories in LME-registered warehouses continued to rise to nearly 76K metric tons, the highest since March 20.

ETFs: ( NYSEARCA: COPX ), ( CPER ), ( JJCTF ), ( JJC )

Freeport McMoRan ( NYSE: FCX ) -3.8% pre-market Thursday; other potentially relevant tickers include ( SCCO ), ( TECK ), ( HBM ), ( AA ), ( CENX ), ( CSTM ), ( RIO ), ( BHP ), ( VALE )

LME aluminum ( LMAHDS03:COM ) recently -0.4% at $2,258/ton, and nickel -1.4% to $22,210/ton, with both metals touching their lowest marks since October.

LME zinc -0.7% to $2,606.50/ton, after touching $2,575/ton, its lowest since February 2021; lead also fell and tin reportedly was stable.

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