SINGAPORE, Aug 5 – Copper prices fell on Wednesday as increased output in top producing countries put a lid on further rally after prices climbed to multi-year highs last month.
Three-month copper on the London Metal Exchange fell 0.2% to $6,443 a tonne by 0146 GMT, while the most-traded September copper contract on the Shanghai Futures Exchange declined 0.7% to 51,350 yuan ($7,375.54) a tonne.
London and Shanghai copper contracts both hit a two-year high last month, partly due to expectations of supply disruptions in top producers Chile and Peru amid COVID-19 restrictions measures.
However, Chilean firm Codelco, the world’s top copper producer, reported a 4.7%-rise year-on-year in January-June output, while expected labour strikes at two Chilean mines failed to take place last month.
Meanwhile, June copper output in Peru, the world’s No. 2 copper maker, jumped 40.8% from a month earlier as mining activities resumed. January-June copper output, however, plunged due to coronavirus restrictions.
* China’s copper premiums at bonded warehouses <CU-BMPBW-SHMET> fell to a seven-week low at $93.5 a tonne.
* U.S. aluminium premiums rose to 12.6 U.S. cents per pound, their highest since March 31, while European premiums also hovered around a four-month high.
* LME aluminium eased 0.2% to $1,766.50 a tonne, while ShFE nickel rose 0.6% to 111,500 yuan a tonne and ShFE lead advanced 1% to 15,965 yuan a tonne.
* Asia shares were set to open lower, following a choppy trading session on Wall Street and losses in Europe.
0500 India IHS Markit Svcs PMI July
0600 UK Reserve Assets Total July
0750 France Markit Serv, Comp PMIs July
0755 Germany Markit Services PMI, Comp Final PMI July
0800 EU Markit Serv, Comp Final PMIs July
1230 US International Trade June
1345 US Markit Serv, Comp Final PMIs July
1400 US ISM N-Mfg PMI July
($1 = 6.9622 yuan) (Reporting by Mai Nguyen; Editing by Rashmi Aich)