Copper loses steam following solid gains

Friday, November 25, 2016

After two days of steep gains thanks to a stronger appetite for riskier investments, the price of copper lost ground on Friday in London.

Spot copper closed down 0.21% at US$5,822.50/t (US$2.641/lb) on the London Metal Exchange from Thursday's US$5,834.50/t, according to Chile's state copper commission Cochilco.

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Cochilco said in its weekly report that the red metal price was up 6.9% from the previous Friday on the back of favorable demand trends out of China and lower production growth for next year.

"It is worth noting that the increase in the price of copper takes place despite the global macroeconomic environment of a stronger US dollar and expectations of an increase in US interest rates," the report said.

Capital Economics said the gains made by industrial metals in the week appear "to be [because of] improving investor sentiment."

Aluminum closed 1.3% lower on Friday at US$1,751/t, while lead was up 2.9% to US$2,302/t and nickel fell 0.9% to US$11,465/t. Zinc was 2.7% higher at US$2,767/t, while tin was down 1.6% to US$21,275/t, and molybdenum steady at US$15,250/t.