Copper Facing Pressure During Weekend

Indian Copper was following global counterparts slipping marginally. Indian Copper was at Rs 481.55 per kg, unchanged from last evening. But throughout the day there has been pressure seen on the prices of Copper. International LME Copper hit a one-week low on Friday while the dollar retained its strength, leaving the market set for its biggest weekly drop since April on concerns over slowing growth in top metals buyer China and looming U.S. trade tariffs against the country.

U.S. President Donald Trump has decided to impose n++pretty significantn++ tariffs, a U.S. official said, and will unveil a list targeting $ 50 billion of Chinese goods on Friday. Beijing has warned that it was ready to respond.

While it is not clear when Trump will activate the measures, rising Sino-U.S. trade tensions will put additional pressure on Chinas economy, which is starting to show signs of cooling under the weight of a multi-year crackdown on riskier lending. The dollar index hit a seven-month high earlier, getting a boost as the euro sagged after a cautious European Central Bank signalled it will keep interest rates at record lows well into next year.

Three-month copper on the London Metal Exchange was down 0.5 percent at $ 7,140 a tonne, having hit a one-week low of $ 7,118.50. The industrial metal has slipped from a 4-1/2 year high hit last week on supply concerns at the worlds biggest copper mine.

China reported weaker-than-expected industrial output, investment and retail sales for May, suggesting further weakness ahead if Beijing sustains its crackdown on factory pollution and local government spending. Chinas output of 10 non-ferrous metals including copper, aluminium, lead, zinc and nickel rose 4.3 percent in May from a year earlier to 4.55 million tonnes. Aluminium production was up 1.5 percent at 2.79 million tonnes.