The price of copper, which has previously been trading on an upward trend on the global market, yesterday witnessed a one percent decline ,weighed down by high inventories ahead of key Chinese trade data. According to Reuters, the price of Zambia’s top export earner, copper retreated.
Early Asian trade is to blame, with high inventories weighing on prices in both London and Shanghai markets. Copper on the London Metal Exchange (LME) had dropped one percent to US$5,520 a tonne in the early hours of yesterday while the most-traded copper contract on the Shanghai Futures Exchange fell 0.20 percentage point to 44,920 yuan (US$6,510) a tonne.
“Inventories on LME warehouses climbed by 36,800 tonnes, exchange data showed on Friday, bringing last week’s surge to 40 percent,” Reuters reports. The looming flurry of Chinese data, due yesterday was expected to show the world’s second-largest economy maintained solid momentum in April after a surprisingly robust first quarter.
However, industrial output is expected to rise 7.1 percent in April, slowing from 7.6 percent in March.