Fund selling pushes copper to 14-week low

LONDON — Copper fell for a second day on Wednesday after a surge of fund selling just before the close reversed gains and drove the metal to a 14-week low, traders said.

“$5,500 seems to be a key level. There appears to be an attempt to push it through that,” David Wilson, an analyst at Citi, said.

Three- month copper on the London Metal Exchange (LME) closed down 0.30% at $ 5,556 a ton, its lowest since Jan 9. The metal fell 2.10% on Tuesday.

“Should (copper) fail to close above $5652 today for a second day running, we might be on track for a possible test of next support at $5,536,” said Edward Meir, an analyst at INTL FCStone.

Chinese refined copper output in March rose 8.50% from a year ago to 764,000 tons, the highest since at least December 2015, official data showed. Aluminum and iron ore output levels were the lowest in months.

Prices in China’s sizzling property market accelerated in March on a monthly basis, while the International Monetary Fund raised forecasts for China’s economic growth in 2017 and 2018.

Freeport McMoRan, Inc. received preliminary approval to resume copper concentrate exports from the world’s secondlargest copper mine in Indonesia and hopes to apply for an export permit this week.

Chile’s Codelco suspended operations at the concentrator plant at its Salvador copper mine after a supervisor died in an accident. Salvador produced 60,000 tons of copper in 2016.

Zinc closed up 1% at $2,550 a ton, rising above its 200-day moving average, currently at $2,235, after falling to a three-and-a-halfmonth low on Tuesday.

If zinc holds above $ 2,520$ 2,515 a ton, “a tentative pullback is likely towards the near term steeper channel at $2,590/$2,608 and perhaps even to the multi- month graphical levels of $2,645,” said Stephanie Aymes, head of technical analysis at Societe Generale.

The global market for refined nickel deepened its deficit to 4,400 tons in February from a deficit of 1,100 tons in January, data from the International Nickel Study Group showed.

Lead also rose back above its 200- day moving average after falling 6.20% on Tuesday. It ended up 2.60% at $2,160 a ton.

LME aluminum closed up 0.60% at $1,903 a ton.

Tin did not trade but was bid 1.50% higher at $19,775.

Nickel finished up 0.30% at $9,340, after touching $9,305, its lowest since June, on Tuesday. —