The metal markets saw little movement on Wednesday as traders waited for today’s summit among European leaders on how to solve the Greek debt crisis and stop it spreading further.
This morning, HSBC’s flash purchasing managers index data showed that China’s factory output slowed for the first time in 12 months in July as Beijing’s tighter monetary policy as well as weaker global demand had an effect.
Commodity Broking Services managing director Jonathan Barratt said: “It’s not a good number, no doubt about that. A number like that will put pressure on copper as well as oil because it suggests the Chinese economy is slowing down.”
Early trading for three-month copper on the LME saw it drop as low as $9,722 at 4:23am this morning. This compares to yesterday’s settlement price of $9,788, which was only slightly up on Tuesday’s $9,779. Due to a slightly changing exchange rate, the sterling price of copper stayed the same at £6,065.
Aluminium crept up on Wednesday to $2,548 (£1,579) compared to Tuesday’s £2,512 (£1,558).
Lead finished on $2,740 (£1,698) on Wednesday down from $2,762 (£1,713) seen the day before. Nickel closed at $23,950 (£14,842) from $24,000 (£14,886) on Tuesday.
Tin traded at $27,875 (£17,275) on Wednesday from $27,550 (£17,088) a day earlier. Zinc was at $2,461 (£1,525) from Tuesday’s $2,471 (£1,532).
Steel picked up to $580 (£359) from $570 (£354) a day earlier.