Copper prices have drifted lower, extending losses from the previous week on worries over China’s property sector and pressure from a stronger United States dollar.
According to Absa Bank Zambia in its daily market update, three-month copper on the London Metal Exchange was down 0.3 percent at US$8,272 per metric tonne, after shedding 3.2 percent in the previous week.
The bank indicated that the most-traded September copper contract on the Shanghai Futures Exchange lost 0.7 percent to 67,970 yuan (US$9,362.13) per metric tonne.
Access Bank Zambia also stated that copper prices fell on Friday and were on track for their biggest weekly fall in three months.
The bank indicated that this was after data demonstrated the sluggish nature of China’s post pandemic recovery.
“Three-month copper on the London Metal Exchange (LME) was down 1.3 percent at US$8,275.5 per metric tonne in official open-outcry trading after touching its lowest since July 7 at US$8,252,” Access bank reported.
Meanwhile, indicators in the financial market show the Kwacha is forecasted to sustain minor losses in the short run.
This followed the weakening of the Kwacha against the United States dollar in Friday’s trading session.
The local currency opened at K19.0209/19.0709 and closed at K19.1072/19.1559 on the market average interbank bid and offer respectively.
Market activity remained stable as dollar supply maintained minimal flows while demand for the green back continued to grow.
In the absence of healthy dollar inflows, the Kwacha is likely to nurse more loses in the near term.
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