THE EDGE MARKETS. 18TH JULY: Industrial metal prices rose on Monday (July 18) on Chinese regulators’ latest effort to avert a potential crisis in the country’s real estate market, which consumes vast amounts of metal.
Three-month copper on the London Metal Exchange (LME) had risen 1.9% to US$7,325.50 (about RM32,613.13) a tonne by 0704 GMT, rebounding after hitting US$6,955 in the previous session for its lowest since November 2020.
The most-traded August copper contract on the Shanghai Futures Exchange advanced 3.3% to 56,390 yuan (US$8,356.05 or about RM37,239.23) a tonne.
Tin climbed 4.6% to 194,890 yuan a tonne, zinc added 3.5% to 22,660 yuan, lead was up 3.6% at 15,040 yuan, and aluminium rose 3.2% to 17,830 yuan.
LME aluminium was up 1.5% at US$2,379 a tonne, and zinc advanced 1.9% to US$2,970 a tonne.
Chinese regulators encouraged lenders to extend loans to qualified real estate projects to ease risks from a widening mortgage payment boycott of unfinished houses, which helped property and bank stocks to recover some of their recent losses.
“[Metal prices falling] was a risk-off pull back due to the fear of more developers going under. Developers in China are having a relief rally, so the construction project cliff is averted for now,” one trader said.
Easing of a red-hot rally in the dollar also helped metal prices, which are traded in the US currency on the LME.
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CMOC’s Tenke Fungurume copper and cobalt mine has suspended all exports, logistics companies were told in a notice seen by Reuters late on Saturday, complying with demands by a court-appointed administrator.