METALSCopper Selloff Continues as Prices Hit 10Week Low


LONDON, June 21 Reuters Copper continued to fall on Monday, hitting its lowest level since midApril after moves by China to rein in commodities price rallies and signals from the U.S. Federal Reserve that it will tighten monetary policy sooner than expected.

Benchmark copper on the London Metal Exchange LME was down 0.4 at 9,108.50 a tonne at 1051 GMT, after touching 9,011.

The metal used in power and construction hit a record high of 10,474.50 in May. Prices fell 8.6 last week.

Weve sen the top, and the trend is to the downside, said Commerzbank analyst Daniel Briesemann, predicting that prices would average 8,0008,500 in the third quarter of the year.

STOCKSDOLLARYUAN The Feds change in tone has hit riskier assets and boosted the dollar, making metals costlier for buyers using other currencies. Global stocks touched a fourweek low on Monday and Chinas yuan fell sharply.

CHINA CRACKDOWN Iron ore futures in Asia tumbled after Chinese authorities launched an investigation into spot trading.

The probe is the latest step by China to keep a lid on surging commodities prices. Last week, it said it would sell industrial metals including copper from its national reserves.

RALLY Copper surged almost 150 between March 2020 and May 2021 as speculators bet demand in infrastructure and electrification would overwhelm supply.

POSITIONING Speculators cut their net long position in LME copper to 10 of active contracts by Thursday, brokers Marex Spectron said. The net long in…

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