Copper dips anew on fund selling; zinc, lead plunge

LONDON — Copper prices extended losses on Friday to their weakest in nearly three months as US speculators unleashed bearish bets despite news that top metals consumer China had bolstered its economy with financing measures.

Zinc and lead touched fresh lows as gains in inventories highlighted weak demand and oversupply.

Three-month copper on the London Metal Exchange (LME) was down 0.2% at $8,177 per metric ton at 1700 GMT, its lowest since Nov. 14.

The contract has lost 3.6% so far this week, and is set for its biggest weekly loss since last May.

US Comex copper futures dropped 0.6% to $3.68 a pound.

Copper went into the red after US traders became active, especially Commodity Trade Advisor investment funds, which are largely driven by computer programs.

During European morning trading, copper was in slightly positive territory after data showed new bank loans in China jumped by more than expected to an all-time high in January, reinforcing expectations for more stimulus in the coming months.

The Shanghai Futures Exchange is closed on Friday and next week for the Lunar New Year holiday.

The prolonged property sector crisis in China has weighed on sentiment, given that construction is a major consumer of base metals.

LME lead shed 1.1% to $2,032.50 a ton, its lowest level since Dec. 13. LME inventories on Friday rose to 150,675 tons, the highest in more than six years, having surged by 39% in slightly over two weeks.

Zinc dropped 1.1% to $2,301.50 a ton, its lowest in more than five months, in the wake of data on Friday showing 10,700 tons of inflows into LME warehouses, bringing the total to 227,225.

Among other metals, LME aluminum eased 0.2% to $2,217.50 per ton; nickel dipped 0.4% to $15,940; while tin jumped 3.1% to $26,700. —