Copper relaxed on Thursday, raising concerns over price controls after Chinese officials promised to keep a tab on rising commodity costs.
Three-month copper was down 0.3% at $ 9,949 a tonne on the London Metal Exchange CMCU3, while the most-traded July copper deal on the Shanghai Futures Exchange SCFCV1 was down 0.2% at 71,480.
As domestic producer inflation has reached its highest level in more than 12 years, China’s government planner renewed its pledge on Wednesday to improve commodity price monitoring and strengthen spot and futures market oversight.
China is the world’s largest metal consumer.
- LME aluminum was down 0.5% at $ 2,446 a tonne, while nickel CMNI 3 was up 0.2% at $ 18,160 a tonne. In Shanghai, aluminum rose 0.7% to 18,505 yuan per tonne, nickel SNICV1 up 0.7% to 132,830 yuan and lead SBBCV1 rose 1.3% to 15,465 yuan per tonne.
- Malaysia Smelting Corporation Pt, the world’s third-largest refiner tin maker, on Wednesday announced it would force its supply to customers as it disrupts production related to the coronavirus.
- LME Cash Aluminum’s premium and three-month contract CMAL 0-3 rose to $11.80 per tonne, the largest since December 2019, indicating a tight distribution of nearby contracts.