Overview of LME base metals on August 2021, 08
London, August 8nd news: On Monday, the London Metal Exchange (LME) copper futures fell, because the US and China factory activity data was weaker than expected, causing the market to worry about the prospect of metal demand.However, the weak US dollar exchange rate, China is expected to introduce more stimulus measures, and the world’s largest Chilean copper mine is facing the threat of a strike, which raises concerns about the interruption of copper supply and helps limit the room for copper prices to fall.
As of 1600 Greenwich, the London benchmark three-month copper fell 0.5% to US$9,678/ton.
In July, US manufacturing activity slowed for the second consecutive month, while the growth rate of China’s manufacturing activity slowed to the slowest level in 7 months.
Due to rising raw material costs, equipment maintenance and extreme weather, the growth rate of Chinese factory activity slowed in July.Analysts said that the slowdown in Chinese factory activity indicates weak demand in China.However, if prices fall, the demand for China’s infrastructure industry may improve in the second half of the year.
On Wednesday, the option profit closing order before the LME option expires also put pressure on the copper price.
On Monday, the U.S. dollar exchange rate hovered slightly above a one-month low, which means that U.S. dollar-denominated metals are cheaper for holders of other currencies.Traders are paying attention to the US employment data to be released later this week.
On Saturday night, the union of the Escondida mine, the world’s largest copper mine under the BHP Group, rejected BHP Billiton’s proposal for a final labor contract by an overwhelming majority, paving the way for a strike.BHP Billiton confirmed that it will require the government to conduct a five-day mediation and can also apply for an extension of five days. If no agreement is reached by then, workers will have the right to strike according to the law.
Other news includes that the U.S. Senator finalized a $1 trillion infrastructure comprehensive plan on Sunday, which includes investment in roads, bridges, ports, high-speed Internet, and other infrastructure details. Some people predict that the Senate will be here. Zhou passed this legislation.
The closing situation of other metals includes, LME three-month aluminum rose 1% to US$2,616.50 per ton; nickel futures fell 0.2% to US$19,505 per ton; zinc futures rose 0.2% to US$3,033.50 per ton; lead rose 0.7 %, reported at US$2,398 per ton; tin rose 0.5%, reported at US$34,825 per ton.