Copper prices open lower this week
PRICES of copper opened lower this week after top consumer China's industrial output data was weaker than expected in May, while a firm United States ( US) dollar also weighed on the red metal.
According to Access Bank daily market update, three- month copper on the London Metal Exchange was down 1.1 percent at US$ 9,637 per metric tonne
This development came after the red metal had a flat week previously.
And Economic Times reported that the most- traded July copper contract on the Shanghai Futures Exchange ( SHFE) slid two percent to 78,110 yuan ( US$ 10,765.03) a tonne.
“China's May industrial output growth slowed to 5.6 percent, missing a forecast of six percent, amid a property market slump, high local government debt and deflation. However, retail sales accelerated last month.
“Prices of copper, often seen as an economic bellwether, jumped in May to record highs on speculative buying amid raw material shortages. They then corrected downward as China's demand proved weaker than expected,” it showed.
And oil prices slipped in Asian trading on Monday after a survey on Friday showed weaker US consumer demand and as May crude production rose in China, the world's biggest crude importer.
Global benchmark Brent crude futures for August delivery were down 29 cents, or 0.4 percent, at US$ 82.33 per barrel US West Texas Intermediate crude futures for July delivery were also down 29 cents at US$ 78.16 a barrel.
The more- active August delivery WTI contract slipped 0.4 percent as well at US$ 77.76 per barrel.
Meanwhile, the Zambian Kwacha extended its gains against the US dollar in Friday’s trading session.
On the market average interbank bid and offer, the USD/ ZMW opened at K26.2967/ 26.3467 and closed at K26.0830/ 26.1330, respectively.
The market witnessed an increase in dollar trading which totalled 12 million dollars mainly stemming from the Bank of Zambia while demand for hard currency decreased.
The local unit was expected to appreciate in the short term.