Copper drops 1.5% on weekly basis

Source: Dukascopy Bank SA
© Scanpix/Reuters
Base metals were bearish over the last week as market players were worried about lack of progress in the US fiscal standoff. Moreover, weak industrial figures from the US added pressure on the industrial metals. Richmond Fed manufacturing index slumped to 5.0 in December in contrast to forecasts of an increase to 12.0 this month. However, the reading above 0.0 still signals improving conditions.

Aluminum lost 0.50% over the week on persistent pressure from elevated LME inventories. Last week, LME stocks reached a record high of 5.24 million tonnes.

Copper finished the week in red territory on the US fiscal uncertainty and high LME and SHFE stockpiles. SHFE stocks attained seven-month high while LME inventories reached almost one-year high last week.

Nickel extended losses, falling 2.50% on a weekly basis amid bloated LME stocks and rising production in Indonesia.

Zinc dropped, tracking high LME stocks and weakness of the industrial metals sector.



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