(Update prices)
By Mai Nguyen
SINGAPORE, August 5 (Reuters) – Copper costs fell on Wednesday as high production in primary-generation countries Chile and Peru pushed costs to peak for several years last month.
The maximum copper contract traded in September on the Shanghai Futures Exchange closed with a drop of 0.7% to 51,350 yuan ($7,386.68) a ton.
“Copper has experienced difficulties after symptoms that source interruptions are decreasing. These source disorders compensate for positive economic data,” said an ANZ note.
Copper contracts in London and Shanghai reached a maximum of two years last month, in part due to expectations of outages in sources in Chile and Peru amid COVID-19 blockades.
But Chilean company Codelco, the world’s largest copper producer, reported a 4.7% increase in production from January to June, while planned hard work movements at two Chilean mines took place last month.
Meanwhile, June copper production in Peru, the world’s second-largest copper producer, rose 40.8% from last month when mining resumed. However, copper production from January to June plummeted due to blockades.
Three-month copper on the London Metal Exchange rose 0.3% to $6470 a tonne at 0704 GMT, as the weakness of the US dollar made the contract less expensive for buyers of other currencies. In the past it had declined by 0.3%.
Coinciding with China’s premiums at the CU-BMPBW-SHMET customs warehouses fell to a seven-week low of $93.5 consistent with the ton, while CAF CU-BPCIF-SHMET premiums fell to their lowest level from June 15 to $72 consistent with the ton.
U.S. aluminium premiums rose to 12.6 cents, in line with the pound, their point from March 31, while European premiums also hovered a maximum of four months of $93 a tonne.
LME aluminum rose 0.2% to $1,773 in line with the ton, while LME zinc decreased by 0.3% to $2,333.50 in line with the ton.
ShFE lead rose 0.5% to 15,900 yuan in line with the ton and ShFE nickel closed a maximum of six months of 112,990 yuan in line with the ton.
For major articles on metals and news, click on or ($1 – 6,9517 yuan) (Report via Mai Nguyen; Edited through Rashmi Aich and Aditya Soni)
All quotes were delayed for at least 15 minutes. See here for a complete list of transactions and delays.
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