Commodity News
HeadLine : Copper dips as inventory build raises fears of excess supply
Date : Feb 19 2020
Copper prices fell on Tuesday as deliveries into exchange warehouses raised fears that demand curbed by the coronavirus outbreak in China could cause a supply glut. Warnings from Apple and HSBC that the epidemic was damaging their businesses sent global equities and most base metals lower, though lead prices rose on a sharp tightening of nearby supply. Benchmark copper on the London Metal Exchange (LME) ended 0.7% down at $5,773 a tonne. The metal used in power and construction has lost 9% since its January peak but has recovered from the Feb. 3 low of $5,523. The virus and efforts to contain its spread have slowed Chinese industry, reducing both consumption and production of metals in the world’s biggest commodities market. Headline copper inventories in LME-registered warehouses rose by 5,075 tonnes to 166,475 tonnes, while stocks in Shanghai Futures Exchange stores have jumped to 262,738 tonnes, the highest in nearly a year.  The net short in LME copper was at 5.8% of open contracts on Friday.

Source: Reuters
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