Overview of LME base metals on August 2021, 09

London, September 3 news: On Friday, the London Metal Exchange (LME) copper futures rose, mainly because the weak US employment data led to the decline in the US dollar. Investors are optimistic that the Fed may not cut monetary stimulus soon.

As of Greenwich 1600, the London benchmark three-month copper rose 0.6% to $9439 per ton.

On the weekly chart, three-month copper rose by US$33, or 0.35%. LME copper rose by US$351 or 3.88% in the previous week.

On Friday, the exchange rate index of the U.S. dollar against its major competitors fell to its lowest point in nearly a month, which means that the U.S. dollar quotation of copper is more attractive to holders of other currencies.

Data released by the US Department of Labor on Friday showed that due to the sluggish demand for services and the continued shortage of workers due to the surge in new crown cases, the number of non-agricultural employment in the United States in August was only 235,000, which was far below market expectations of 728,000.

Analysts said that the weak employment data makes the market expect the Fed may postpone the timetable for reducing monetary stimulus, which will help support the metal.

The decline in copper stocks on the exchange also supported copper prices. In the past two weeks, copper warehouse receipts in LME-registered warehouses have fallen by a third to 152,475 tons. In the delivery warehouse of the Shanghai Futures Exchange, copper stocks fell 15.9% to 69,278 tons.

In China, survey data released on Friday showed that China’s service industry activity contracted significantly in August. In August, the seasonally adjusted China Service Industry Purchasing Managers Index (PMI) was only 46.7%, a 16-month low, well below the 54.9% in July. The comprehensive PMI in August also fell to 47.2%, a record low in 17 months. As the new crown epidemic broke out in many parts of China in late July, relevant epidemic prevention and control measures have affected the service industry. However, with the epidemic under control and the arrival of Mid-Autumn Festival and National Day, service industry demand in September is expected to recover strongly. Goldman Sachs released a research report that China’s macroeconomic data is expected to be weak in August, but it is expected to improve in September, because the epidemic in China is basically under control and travel restrictions are expected to be gradually relaxed. In addition, the economic growth rate in the fourth quarter is expected to be strong.

The closing situation of other metals includes, LME three-month aluminum rose 1%, at 2,723 US dollars per ton. Zinc rose 0.7% to US$2,999 per ton, lead fell 0.3% to US$2,305 per ton, tin fell 1.2% to US$33,100 per ton, and nickel rose 1.5% to US$19,744 per ton.

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