METALS-Copper wallows near multi-month lows as recession fears bite

BY Reuters | ECONOMIC | 07/04/22 11:05 PM EDT
       July 5 (Reuters) - Copper prices languished near 17-month
lows on Tuesday on heightened worries that aggressive rate hikes
by central banks to tackle soaring inflation would push
economies into a recession and dent demand for metals.

    FUNDAMENTALS
    * Three-month copper on the London Metal Exchange
was down 0.2% at $7,993 a tonne, as of 0244 GMT, after hitting
its lowest since February 2021 at $7,918 on Monday.
    * The most-traded August copper contract in Shanghai
         fell 0.7% to 60,770 yuan ($9,081.54) a tonne.
    * Pulling down economic activity are soaring inflation and
interest rate hikes in many countries including the United
States where the Federal Reserve is expected to deliver another
75-basis-point hike this month.
    * China's services activity snapped three months of losses
in June and grew at the fastest rate in almost a year as easing
COVID-19 curbs revived demand, although firms remained cautious
about hiring, a private-sector survey showed.
    * Japan's services sector activity expanded at the fastest
pace in more than eight years in June as the easing of
coronavirus curbs boosted sentiment among businesses such as
those in tourism.
    * Mainland China reported 418 new coronavirus cases for July
4, compared with 460 new cases a day earlier, the National
Health Commission said.
    * The premium for aluminium shipments to Japanese buyers for
July to September was set at $148 a tonne, down 14% from the
previous quarter, to reflect weak demand for automobiles and
rising local inventory.
    * Chile's total copper production fell 2.55% in May to reach
478,800 tonnes, government body Cochilco said on Monday.

    * Global copper smelting activity declined in June, hit by a
stoppage in top producer Chile, data from satellite surveillance
of metal processing plants showed on Monday.

    MARKETS NEWS
    * Asian shares rose on Tuesday as market sentiment got a
boost after Japan reported positive economic data.

    DATA/EVENTS (GMT)
    0430  Australia  RBA Cash Rate                     July
    0500  India      S&P Global Svcs PMI               June
    0750  France     S&P Global Svcs, Comp PMIs        June
    0755  Germany    S&P Global Svcs PMI               June
    0755  Germany    S&P Global Comp Final PMI         June
    0800  EU         S&P Global Svcs, Comp Final PMIs  June
    0830  UK         Reserve Assets Total              June
    1400  US         Factory Orders MM                 May

    PRICES
    Three month LME copper
    Most active ShFE copper
    Three month LME aluminium
    Most active ShFE aluminium
    Three month LME zinc
    Most active ShFE zinc
    Three month LME lead
    Most active ShFE lead
    Three month LME nickel
    Most active ShFE nickel
    Three month LME tin
    Most active ShFE tin


($1 = 6.6916 Chinese yuan)

 (Reporting by Brijesh Patel in Bengaluru; Editing by Sherry
Jacob-Phillips)



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