Copper prices rose slightly on Friday, but remained on track to end the week lower after stimulus measures from top consumer China failed to ease demand worry.
Three-month copper on the London Metal Exchange (LME) rose 0.3% to $9,536 per metric ton by 0344 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) advanced 0.1% to 76,600 yuan ($10,749.97) a ton.
LME copper was on track for its fourth straight week of decline. SHFE copper was also set for a weekly drop.
China released a slew of supportive measures to boost growth but the scale of support so far failed to lift demand worries.
LME aluminium dropped 1.7% to $2,605.50 a ton, retreating from a near five-month high hit in the previous session on raw material supply worry.
LME zinc fell 1.4% to $3,130, but was set to log a weekly gain after hitting a 20-month high on Thursday on tightness of near-term supplies.
LME zinc hits 3-week high amid supply disruptions
“It is not the first time that metals have got carried away with supply disruption or ore shortage stories by ignoring demand slowdown. But in most such times, prices have started multi-month bearish trend,” said Sandeep Daga, a director at Metal Intelligence Centre.
“Bulls are refraining from adding new bets despite Chinese stimulus, while bearish stakes are at multi-year low. A large part of panic buying from bears is over. I expect prices to slide,” Daga said, adding that LME copper could fall to $9,200 a ton.
LME nickel eased 0.4% to $16,230, lead edged down 0.2% at $2,070 and tin fell 0.4% to $31,000.
SHFE aluminium fell 1.2% to 20,785 yuan a ton, zinc declined 0.4% to 25,245 yuan, tin decreased 0.4% to 253,750 yuan, while nickel rose 0.3% to 126,310 yuan and lead edged up 0.2% at 16,790 yuan.
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