Nov 9 (Reuters) – London copper prices fell on Tuesday after a jump in the previous session, as demand concerns fuelled by the liquidity crisis in China’s property sector weighed on the market.
Three-month copper on the London Metal Exchange CMCU3 fell 0.4% to $9,600 a tonne by 0408 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange SCFcv1 advanced 0.6% to 70,440 yuan ($11,009.69) a tonne, tracking overnight gains in London.
Investors have been worried about a broadening liquidity crisis in China’s property sector, with a string of offshore debt defaults, credit rating downgrades and sell-offs in some developers’ shares and bonds in recent weeks.
The real estate sector accounts for a large share of copper consumption and China is the world’s biggest user of the metal.
Copper prices, which have been supported by low exchange warehouse inventories, jumped on Monday on solid U.S. and China economic data, as well as a $1-trillion U.S. infrastructure bill that could boost metals demand and economic growth.
FUNDAMENTALS
* LME aluminium CMAL3 fell 0.4% to $2,595 a tonne, zinc CMZN3 declined 0.9% to $3,242 a tonne and lead CMPB3 fell 0.7% to $2,349 a tonne.
* ShFE nickel SNIcv1 rose 1.1% to 144,720 yuan a tonne, aluminium SAFcv1 advanced 0.4% to 19,025 yuan a tonne, zinc SZNcv1 climbed 0.7% to 23,075 yuan a tonne and tin SSNcv1 increased 0.5% to 276,570 yuan a tonne.
* European automakers reeling from a global chip shortage have in recent days hastened to assure shareholders that shortages of magnesium are not, for now, a risk to their production plans.
* For the top stories in metals and other news, click
TOP/MTL or MET/L MARKETS NEWS
* Asian shares followed Wall Street higher in early trade as the passage of a U.S. infrastructure bill boosted sentiment while oil prices gained on the outlook for energy demand in an expansive global economy. MKTS/GLOB DATA/EVENTS (GMT)
1000 Germany ZEW Economic Sentiment Nov
1000 Germany ZEW Current conditions Nov
($1 = 6.3980 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu)
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