Shanghai: Copper prices fell yesterday, as a firm US dollar and concerns in the Chinese property market weighed on sentiment, but slowing industrial profits decline lent prices some support.
The most-traded November copper contract on the Shanghai Futures Exchange fell 0.6% to 67,140 yuan per tonne yesterday, and three-month copper on the London Metal Exchange was almost unchanged at US$8,092 a tonne.
The US dollar traded near a 10-month high against its major peers, making greenback-priced metals more expensive to holders of other currencies.
Meanwhile, troubles in China’s real estate sector, which accounts for a vast amount of metals demand, have been weighing on metals prices.
The chairman of China Evergrande Group has been placed under police surveillance, Bloomberg News reported, raising more doubts about the embattled developer’s future as it also grapples with mounting prospects of liquidation.
The Evergrande debt issue resurfacing has weakened the China recovery sentiment, said National Australia Bank analysts in a note. — Reuters