Copper drops as China data looms, inventories rise

Copper drops as China data looms, inventories rise

May 8 Copper retreated in early Asian trade, with high inventories weighing on prices in both London and Shanghai markets ahead of key Chinese trade data on Monday.

The looming flurry of Chinese data, due around 0200 GMT, is expected to show the world’s second-largest economy maintained solid momentum in April after a surprisingly robust first quarter. But industrial output is expected to rise 7.1 percent in April, slowing from 7.6 percent in March.

FUNDAMENTALS

* LONDON COPPER: Three-month copper on the London Metal Exchange had dropped 1 percent to $5,520 a tonne by 0139 GMT.

* SHANGHAI COPPER: The most-traded copper contract on the Shanghai Futures Exchange fell 0.20 percent to 44,920 yuan ($6,510) a tonne.

* LME STOCKS: Inventories in London Metal Exchange (LME) warehouses climbed by 36,800 tonnes, exchange data showed on Friday, bringing last week’s surge to 40 percent.

* COPPER STRIKE: Peruvian miners voted on Friday to approve a national strike in June to protest “anti-labour” government proposals, Ricardo Juarez, secretary general of the National Federation of Miners, Metallurgists and Steelworkers, told Reuters.

* OIL: Oil traders have finally given up on an early rebalancing of the crude market, with flat prices and calendar spreads plunging to the lowest level since OPEC’s agreement was announced.

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