Commodity News
HeadLine : Copper falls after U.S. kills top Iranian commander
Date : Jan 6 2020
Copper and most other industrial metals fell on Friday as the killing of a top Iranian commander by the United States sent shockwaves through markets, pushing oil prices sharply higher. Benchmark copper on the London Metal Exchange (LME) was down 0.6% at $6,149.50 a tonne, having earlier touched its lowest since Dec. 11 at $6,088.50.The metal used in power and construction has fallen more than 1% this week, breaking a run of six weekly gains that had lifted prices to seven-month highs. The confrontation could worsen friction between Washington and Beijing, already locked in a damaging trade dispute, while higher oil prices would dampen economic activity, potentially weakening metals demand, Hansen said. China’s foreign ministry said on Friday it consistently opposes the use of force in international relations. Iran threatened to hit back hard after a U.S. air strike in Baghdad killed Qassem Soleimani, commander of Iran’s elite Quds Force and one of the country’s most powerful men. The U.S. manufacturing sector contracted in December by the most in more than a decade, an industry report said on Friday. China will keep its inflation target unchanged this year at around 3%, sources told Reuters, suggesting policymakers will roll out more economic support measures while avoiding aggressive stimulus. The report comes after metals prices were boosted by a reduction in Chinese bank reserve requirements and data which showed China’s factory activity was not collapsing. China is the world’s largest consumer of metals. Inventories in LME-registered warehouses have more than halved since August to 144,525 tonnes, while stocks in Shanghai Futures Exchange warehouses, at 141,317 tonnes, are up nearly 30,000 tonnes from early December.

Source : CNBC

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