HANOI, June 10 (Reuters) – Copper fell on Thursday amid renewed fears over price controls after rising producer inflation has strengthened China’s resolve to keep commodity prices in check.
Three-month copper contracts on the London Metal Exchange fell 0.6% to $ 9,920 a tonne by 07.06 GMT, while the best-selling July copper contracts on the Shanghai Futures Exchange fell 0.5% to 71,290 yuan ( 11,167.15 USD) per ton.
China’s state planner on Wednesday reaffirmed its pledge to strengthen monitoring of commodity prices and tighten surveillance of spot and futures markets as domestic inflation hit its highest level in more than 12 years.
This year, copper prices are up 28% on the LME and 21% on the ShFE. Both contracts hit record highs last month.
“This rise in commodity prices has raised concerns that officials will curb speculation. China’s Economic Policy Agency has pledged to strengthen its control over commodity markets, ”ANZ said in a statement.
China is the world’s largest consumer of metals.
The market is also awaiting US inflation data later Thursday in order to understand the Fed’s stance on reducing monetary stimulus, which could dampen demand for metals.
* Aluminum on the London Metal Exchange fell 0.5% to $ 2,447.50 a tonne, while nickel fell 1% to $ 17,955 a tonne. In Shanghai, prices for aluminum rose 0.4% to RMB 18,440 per tonne, nickel – by 0.6% to RMB 131,110 per tonne, and lead – by 1% to RMB 15,440 per tonne.
* Malaysia Smelting Corporation Bhd, the third largest refined tin producer in the world, said Wednesday that it has announced force majeure shipments to customers due to production disruptions related to the coronavirus.
* LME Cash Aluminum Premium and 3 Month Contract CMAL0-3 rose to $ 11.80 per tonne, the highest level since December 2019, indicating a decline in supplies from nearby contracts.
* To see top metal news and other news, click or ($ 1 = RMB 6.3839) (Mai Nguyen Report; Editing by Ramakrishnan M., Deviki Shyamnath and Elaine Hardcastle)