By Pratima Desai
LONDON (Reuters) – Oil prices fell on Monday as demand concerns dominated sentiment, although falling inventories provided some support.
* A slowdown in manufacturing activity in China in recent months due to the COVID-19 shutdown has dampened demand for copper, which is widely used in the energy and construction sectors. Economic problems in the United States and Europe are also undermining demand.
Benchmark copper on the London Metal Exchange (LME) was down 0.8% at $8,014 a ton by 1109 GMT.
* “Chinese economic data is weak… China’s interest rate cuts are having a negative impact as they confirm concerns that the Chinese economy is not doing well,” said Jordi Wilkes, analyst at Sucden Trade. Finance.
* Industrial metals are also affected by sharp interest rate hikes by the US Federal Reserve. These raised concerns about the US manufacturing sector and boosted the dollar, making dollar-priced goods more expensive for buyers in other currencies.
* On the other hand, energy problems in Europe and China are expected to reduce metal production and support energy-intensive gold and gold prices.
“Copper uses much less energy; it is stronger,” said Wilkes of Sukden, adding that current copper prices are too high. “The next target for us is $7,800.”
* However, copper support at around $7,990, the 50-day moving average, could limit losses, as well as lower stocks in LME-listed warehouses.
* Canceled purchase orders – metals destined for delivery – which account for 40% of the total 122,575 tons, also indicate that more copper will leave LME warehouses in the coming days.
* Among other base metals, aluminum fell 0.2% to $2,381 a ton, zinc fell 0.1% to $3,484, lead rose 0.2% to $2,046, tin was down 1, it fell 8% to $24,350, and it fell 0.2% to $22.210. dollars.
* To view updated base metal prices:
– copper
– bullets
– TIN
– nickel
– aluminum
– zinc
(Reporting by Pratima Desai; Editing in Spanish by Ricardo Figueroa)
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