Copper slips from three-month peak on Chinese data
Copper prices slipped on Friday from a three-month peak after weak data in top metals consumer China and some profit-taking, but losses were modest due to underlying tightness and buoyant premiums.
London Metal Exchange benchmark three-month copper fell 0.5% to $9,855 per metric ton in official open-outcry trading, having hit $9,917, its highest since March 27. It was up 2.2% for the week.
Data showed that China's industrial profits swung back into sharp decline in May from a year earlier, as factory activity slowed.
"Falling industrial profits is not a good sign for the industrial sector in general, but it's not a straight line translation to lower copper demand," said Nitesh Shah, commodity strategist at WisdomTree.
"What we see is that the copper-intensive stories are probably still very much in full force at the moment."
Spending by China on its power grid, for example, has been strong, Shah added. It hit a record last year and was up 19% in the first five months of 2025, Citi said in a note.
Copper on the Shanghai Futures Exchange rose 1.5% to 79,920 yuan ($11,148.93), having hit 80,060 yuan, its highest since March 31. It was up 2% for the week.
Expectations that the United States will impose tariffs on copper imports have pulled metal to that country, leaving shortages elsewhere.
Data on Friday showed that inventories in warehouses monitored by ShFE slid 19% from the previous week to 81,550 tons, down 70% over the past four months.
LME copper stocks have tumbled 66% in the same period, sending premiums for nearby contracts soaring.
The premium for the LME cash copper contract over the three-month contract retreated on Friday to $250 a ton from $320 a ton on Thursday, its highest since November 2021.
U.S. Comex copper futures fell 1.2% to $5.06 a lb, bringing the premium of Comex over LME copper to $1,311 a ton, slightly weaker than on Thursday.
Among other metals, LME aluminium dipped 0.1% to $2,580 a ton, zinc shed 0.5% to $2,755, lead fell 0.3% to $2,033, nickel was little changed at $15,210 while tin rose 0.5% to $33,930.
For the top stories in metals, click
($1 = 7.1684 Chinese yuan)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Today
34 minutes ago
- Gulf Today
Global stocks rally on China-US trade hopes, dollar trades at multi-year lows
Global shares reached a record high on Friday, helped by market optimism over signs of progress in US-China trade talks, while the dollar held close to its lowest levels in more than three years. The benchmark S&P 500 index and Nasdaq hit all-time highs, lifted partly by gains in megacap growth stocks including Nvidia and Amazon. The S&P 500 index and Nasdaq are headed for a weekly gain and are up about 5% this year overall, following a volatile first half of the year, dominated by US President Donald Trump's tariff announcement on April 2, which sent stocks plunging. The pan-European STOXX 600 index was up 0.66% on the day, set for a weekly gain. The MSCI World Equity index touched a record high and was set for a weekly gain of 3.2%. London's FTSE 100 rose 0.35%. Asian shares hit their highest in more than three years in early trading. "It's a continuation of this monster rally since early April," said James St. Aubin, chief investment officer at Ocean Park Asset Management in Santa Monica, California. "It's been quite an improbable comeback and it continues, assuming that the tariff controversy is no longer a major issue in the psyche of the market." Investors saw a trade agreement between the United States and China on Thursday on how to expedite rare earth shipments to the United States as a positive sign, amid efforts to end the tariff war between the world's two biggest economies. Trump has set July 9 as the deadline for the European Union and other countries to reach a deal to reduce tariffs. Traders took confidence too from a ceasefire between Iran and Israel and markets stepped up bets for US rate cuts amid the possibility of Trump announcing a new, more dovish Federal Reserve chair ahead of the expiration of Jerome Powell's term next year. Data showed US consumer spending unexpectedly fell by 0.1% in May for the second time this year, while monthly inflation maintained a moderate pace of increase. "We're starting to see earnings estimates for the next 12 months on the rise again after taking a little bit of a dip and that's what the market is buying into," St. Aubin added. The dollar remained on the backfoot, hovering near its lowest level in 3-1/2 years against the euro and sterling. The dollar weakened 0.16% to 0.799 against the Swiss franc but was up 0.18% to 144.63 against the Japanese yen . The euro was at $1.1708, getting a lift after data showed French consumer prices rose more than expected in June. The dollar index was down 0.1% on the day at 97.269, holding near its lowest in more than three years. The dollar is having its worst start to a year since the era of free-floating currencies began in the early 1970s. Traders have stepped up their bets on US rate cuts, and are now pricing in 64 basis points (bps) of easing this year versus 46 bps expected on Friday. The yield on benchmark US 10-year notes rose 1.2 basis points to 4.265%. German 30-year government bond yields were on track for their biggest weekly increase in nearly four months after rising this week on expectations of increased borrowing by Germany's government. Oil prices meanwhile rose but were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate. Brent crude futures rose 0.66% to $68.18 a barrel while US West Texas Intermediate crude was up by 1% to $65.91 . Spot gold fell 1.72% to $3,270.50 an ounce. Oil prices rose on Friday but were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate. Brent crude futures were up 53 cents, or 0.78%, to $68.26 a barrel at 1457 GMT, while US West Texas Intermediate crude was up 59 cents, or 0.9%, to $65.82. During the 12-day war that started after Israel targeted Iran's nuclear facilities on June 13, Brent prices rose briefly to above $80 a barrel before slumping to $67 a barrel after US President Donald Trump announced an Iran-Israel ceasefire. That put both contracts on course for a weekly fall of about 12%. "The market has almost entirely shrugged off the geopolitical risk premiums from almost a week ago as we return to a fundamentals-driven market," said Rystad analyst Janiv Shah. He said the market was also keeping an eye on the July 6 meeting of oil producers group OPEC+, where another output hike of 411,000 barrels per day is expected, while adding that summer demand indicators were key as well. Phil Flynn, senior analyst with the Price Futures Group, said expectations of higher demand in the coming months were also giving crude a boost on Friday. "We're getting a demand premium on oil," Flynn said. A possible end to the 19-month war between Israel and Hamas in Gaza and expected agreements between the US, Europe and China on trade were positive signs for the market, he added. "If we get a trade deal with China, we're going to be in pretty good shape," Flynn said. Prices were also supported by multiple oil inventory reports that showed strong draws in middle distillates, said Tamas Varga, a PVM Oil Associates analyst. Data from the US Energy Information Administration on Wednesday showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising. Meanwhile, data on Thursday showed that independently held gasoil stocks at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell to their lowest in over a year, while Singapore's middle distillates inventories declined as net exports climbed week on week. Additionally, China's Iranian oil imports surged in June as shipments accelerated before the Israel-Iran conflict and demand from independent refineries improved, analysts said. China is the world's top oil importer and biggest buyer of Iranian crude. It bought more than 1.8 million barrels per day of Iranian crude from June 1-20, according to ship-tracker Vortexa, a record high based on the firm's data. (Reporting by Erwin Seba in Houston, Siyi Liu in Singapore and Nicole Jao in New York Agencies
Zawya
5 hours ago
- Zawya
China fashion retailer Shein to file confidentially for Hong Kong IPO in rare move, sources say
China-founded fast-fashion retailer Shein plans to file a draft prospectus confidentially for its Hong Kong listing, marking a rare departure from the usual practice of companies making public filings of IPO documents, three sources with knowledge of the matter said. Shein aims to submit the filing confidentially as soon as this week, one of the sources said. A second source said the filing was expected to be made by Monday. Shein's confidential filing, if approved, would represent a waiver of one of the main listing rules by the Hong Kong exchange for one of the world's most closely-watched IPO candidates, and possibly the largest in the city this year, two of the sources said. The filing will come as the company, which sells low-priced apparel such as $5 dresses and $10 jeans in around 150 countries, makes its third attempt to go public, more than 18 months after it first filed for a U.S. IPO in late 2023. Confidential filings enable companies to keep vital operational and financial information under wraps for longer and allow them to go through the regulatory review process without public disclosure. Hong Kong's listing rules permit confidential filings for secondary listings by companies already listed on recognised overseas exchanges, such as the New York Stock Exchange or Nasdaq. The exchange could also waive or modify the publication requirements in a spinoff from an overseas listed parent upon application by a new applicant, the listing rules show. While this practice is common for IPO applicants in the U.S., it remains relatively rare in Hong Kong, where high-profile IPOs have included Chinese tech giants Xiaomi and Meituan, which both filed publicly for their floats. The sources spoke to Reuters on the condition of anonymity as they were not authorised to speak to the media. Shein, founded by China-born entrepreneur Sky Xu, did not reply to a request for comment. The Hong Kong stock exchange declined to comment on individual companies. Documents, including financials, related to Shein's IPO will remain undisclosed until the company passes a hearing with the Hong Kong stock exchange, which is the final step in the city's regulatory approval process. Prior to that final step, Shein must secure an approval from the China Securities Regulatory Commission (CSRC) to go ahead with the Hong Kong IPO. It is not known if Shein has already secured a verbal nod from the Chinese securities regulator. The CSRC did not respond to Reuters request for comment. Reuters first reported last month, citing sources, that Shein was working towards a listing in Hong Kong after its proposed London IPO failed to secure the green light from Chinese regulators. The New York attempt also did not receive CSRC approval, Reuters previously reported. REGULATORY APPROVAL Shein's confidential submission of the prospectus enables Hong Kong and mainland Chinese regulators to assess the IPO application, raise their questions to Shein and prepare it for regulatory approval privately, the sources said. The regulators would be able to do that before public, including potential institutional investors', scrutiny of its application materials, including risk factors, they added. The filing would come against the backdrop of Shein grappling with the knock-on impacts of the Sino-U.S. trade war after U.S. President Donald Trump ended duty-free treatment of ecommerce parcels and hiked tariffs on Chinese goods, hurting its business in the U.S., its biggest market. Shein was valued at $66 billion during its pre-IPO fundraising round in 2023, down by a third from a funding round one year earlier. Its eventual IPO valuation will hinge on the impact of the tariff changes, sources have said. RISK DISCLOSURES A Shein listing would help Hong Kong, which saw $12.8 billion worth of IPOs and second listings in the first half, re-establish its credibility as a global fundraising centre at a time of major volatility stoked by U.S. trade policy changes. Shein, founded in mainland China in 2012, is hoping to succeed in Hong Kong after failed attempts to list in New York and then London, where Britain's financial regulator approved the listing. Shein will have to file with the CSRC within three working days after submitting its IPO application in Hong Kong, in line with Beijing's rules for Chinese firms seeking offshore listings. Shein shifted headquarters from China to Singapore in 2022 and does not own or operate any factories, but remains subject to Chinese IPO rules because its products are mostly made by a network of 7,000 third-party suppliers in China, sources have said. The CSRC applies the rules on a "substance over form" basis, granting it discretion on when and how to implement them. A draft prospectus would normally disclose key risks to a company including those linked to its supply chain. Shein has faced allegations from politicians and campaigners that its supply chain in China is linked to forced labour of Uyghur minorities in Xinjiang, a highly contentious issue for Beijing, which denies any abuses in the cotton-producing province. The U.S. has a ban in place on imports of products made using forced labour from Xinjiang, and Shein has said it does not allow its suppliers to use Chinese cotton in U.S.-bound products. Shein has said its supplier code of conduct prohibiting forced labour applies worldwide.
Zawya
5 hours ago
- Zawya
Copper slips from three-month peak on Chinese data
Copper prices slipped on Friday from a three-month peak after weak data in top metals consumer China and some profit-taking, but losses were modest due to underlying tightness and buoyant premiums. London Metal Exchange benchmark three-month copper fell 0.5% to $9,855 per metric ton in official open-outcry trading, having hit $9,917, its highest since March 27. It was up 2.2% for the week. Data showed that China's industrial profits swung back into sharp decline in May from a year earlier, as factory activity slowed. "Falling industrial profits is not a good sign for the industrial sector in general, but it's not a straight line translation to lower copper demand," said Nitesh Shah, commodity strategist at WisdomTree. "What we see is that the copper-intensive stories are probably still very much in full force at the moment." Spending by China on its power grid, for example, has been strong, Shah added. It hit a record last year and was up 19% in the first five months of 2025, Citi said in a note. Copper on the Shanghai Futures Exchange rose 1.5% to 79,920 yuan ($11,148.93), having hit 80,060 yuan, its highest since March 31. It was up 2% for the week. Expectations that the United States will impose tariffs on copper imports have pulled metal to that country, leaving shortages elsewhere. Data on Friday showed that inventories in warehouses monitored by ShFE slid 19% from the previous week to 81,550 tons, down 70% over the past four months. LME copper stocks have tumbled 66% in the same period, sending premiums for nearby contracts soaring. The premium for the LME cash copper contract over the three-month contract retreated on Friday to $250 a ton from $320 a ton on Thursday, its highest since November 2021. U.S. Comex copper futures fell 1.2% to $5.06 a lb, bringing the premium of Comex over LME copper to $1,311 a ton, slightly weaker than on Thursday. Among other metals, LME aluminium dipped 0.1% to $2,580 a ton, zinc shed 0.5% to $2,755, lead fell 0.3% to $2,033, nickel was little changed at $15,210 while tin rose 0.5% to $33,930. For the top stories in metals, click ($1 = 7.1684 Chinese yuan)
