METALS-London copper heads for worst week in a year on slowdown fears

| Fri, 24 Jun 2022 02:53:19 GMT

June 24 (Reuters) – London copper prices languished near 16-month lows on Friday and looked set to post their biggest weekly drop in a year, as rapid interest rate hikes and weak economic readings raised recession fears. FUNDAMENTALS * Three-month copper on the London Metal Exchange was up 0.1% at $8,421 a tonne, as of 0237 GMT, after dropping to its lowest since February 2021 at $8,326 on Thursday. The contract was down 6% for the week. * The most-traded July copper contract in Shanghai fell 3.3% to 64,220 yuan ($9,590.51) a tonne and was down 7.8% for the week – its largest weekly fall since March 2020. * The U.S. Federal Reserve’s commitment to reining in 40-year-high inflation is “unconditional,” its chair Jerome Powell told lawmakers on Thursday, even as he acknowledged that sharply higher interest rates may push up unemployment. * Euro zone business growth has slowed significantly in June as consumers concerned about soaring bills opted to stay at home and defer purchases to save money, a survey showed. * Union leaders at Chile’s state-owned mining firm Codelco, the world’s largest copper producer, reached an agreement with the company to end a national strike over the decision to close a smelter located in a highly polluted area. * Mainland China reported 143 new coronavirus cases for June 23, compared with 135 new cases a day earlier. COVID restrictions in China have battered the country’s economy and manufacturing sector. * The global zinc market moved to a surplus of 10,900 tonnes in April from a revised deficit of 31,700 tonnes a month earlier, data from the International Lead and Zinc Study Group showed. * The LME said on Thursday it had appointed management consultants Oliver Wyman to carry out an independent review of the events that led to a week-long suspension of nickel trading in March. MARKETS NEWS * Stocks and bonds were both headed for their first weekly gain in a month as investors wagered on central banks bringing inflation to heel, though growth fears dragged on commodities. DATA/EVENTS (GMT) 0600 UK Retail Sales MM/YY May 1400 US U Mich Sentiment Final Jun 1400 US New Home Sales-Units May PRICES Three month LME copper Most active ShFE copper Three month LME aluminium Most active ShFE aluminium Three month LME zinc Most active ShFE zinc Three month LME lead Most active ShFE lead Three month LME nickel Most active ShFE nickel Three month LME tin Most active ShFE tin ($1 = 6.6962 Chinese yuan) (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)

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