METALS-Copper falls in broad market selloff; weak China data weighs
Copper and other industrial metals fell due to hawkish U.S. Federal Reserve interest rate remarks and weak Chinese economic data, sparking a broad market selloff. Copper dropped 1% to $10,848 per metric ton, despite a weekly gain of 1.2%. The selloff was compounded by China's weak factory output and retail sales, pressuring policymakers. Other metals like aluminium, zinc, nickel, tin, and lead also declined.
(Updates prices)
LONDON, Nov 14 (Reuters) - Copper and other industrial metals fell on Friday, joining a broad market selloff sparked by hawkish remarks on interest rates from U.S. Federal Reserve officials, while weak data from top consumer China fanned concerns over demand.
Benchmark three-month copper (CMCU3) on the London Metal Exchange was down 1% at $10,848 per metric ton as of 1700 GMT, having tumbled as much as 1.8% to $10,755 earlier in the session.
The metal was still on course for a weekly gain of around 1.2%, having briefly crossed the $11,000 mark on Thursday. It hit an all-time peak of $11,200 on October 29.
“Copper looked like it was going to hit a new high a couple of times last week,” said Robert Montefusco at broker Sucden Financial. “It’s failing at the moment because the fear of the AI bubble in stocks bursting is keeping us at bay. But longer term, I think copper goes again.”
The selloff in equities, which came as hopes for a Fed rate cut in December dimmed, was compounded by weak Chinese economic data. China’s factory output and retail sales grew at their weakest pace in over a year in October, piling pressure on policymakers to revamp the $19 trillion export-driven economy.
“Anecdotal evidence from China suggests we’re not seeing all this big demand out there right now. Longer term, yes maybe, but not right now,” Montefusco said of copper.
The LME complex was lower across the board. Aluminium (CMAL3) was down 1.4% to $2,856.50 a ton, after earlier sinking as much as 2.1% to a one-week low, while zinc (CMZN3) dropped 1.2% to $3,019, having briefly slipped under $3,000 to its lowest since October 24.
Nickel (CMNI3) was down 0.8% to $14,860 after earlier sinking to a more than three-month low, while tin (CMSN3) shed 1.1% to $36,815 and lead (CMPB3) lost 0.8% to $2,062.
