Inflation rate causes copper to cool

AFTER searing rises this month, copper prices fell on May 13, as higher-than-expected inflation rate in the United States sparked fears of monetary tightening, potentially restricting liquidity into commodities.
Inflation rate causes copper to cool Inflation rate causes copper to cool Inflation rate causes copper to cool Inflation rate causes copper to cool Inflation rate causes copper to cool

Staff Reporter

The most-traded June copper contract on the Shanghai Futures Exchange dipped 0.3% to 76,150 yuan ($11,799.25) per tonne, while three-month copper on the London Metal Exchange was unchanged at $10,445/t, Reuters reported.
 
Both contracts were hovering near their record high levels hit on Monday.
 
US consumer prices increased by the most in nearly 12 years in April as booming demand amid a reopening economy pushed against supply constraints, which could add fuel to financial market fears of a lengthy period of higher inflation.
 
The consumer price index jumped 0.8% last month, its largest gain since June 2009. Economists polled by Reuters had forecast the CPI would climb 0.2%.
 
However, earlier in the week, copper reached fresh highs, rising 0.7% to $10,448.50 per tonne, or $4.74 per pound. Volatile tin rose 3.3% to $33,677/t, just shy of the record reached last week.
 
Nickel was up 1% to $17,905.75/t.
 
A recent Macquarie review of the recent statistics from the Lisbon-based study groups of copper, zinc and lead, and nickel found that copper was set to be the tightest metal in 2021.
 
"For copper, the growth in mine and refined supply are closely matched, while for nickel, lead and zinc mine supply growth exceeds refined, suggest some easing of raw material tightness," the bank said.
 

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