IV:Copper retreats from 3-week high as China inflation data weighs
Investing.com - Copper futures retreated from the previous session’s three-week high on Thursday, as sentiment on the industrial metal was dampened following the release of data showing inflation in China accelerated at a faster rate than expected last month.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.334 a pound during European morning trade, down 1.1% on the day.
New York-traded copper prices fell by as much as 1.5% earlier in the session to hit a daily low of USD3.321 a pound.
Official data released earlier showed that consumer prices in China rose 2.4% in April from a year earlier, above expectations for a 2.3% increase and accelerating from a 2.1% rate of increase in March.
The faster-than-expected increase in the rate of inflation dampened hopes policy makers in Beijing could introduce fresh easing measures to boost economic growth in the world’s second largest economy.
The data also showed that producer price inflation fell 2.6%, compared to expectations for a 2.2% decline and steepening from a 1.9% drop in March.
On Tuesday, Comex copper prices hit USD3.398 a pound, the strongest level since April 12, following the release of positive trade data out of China.
China's exports rose 14.7% year-on-year last month, while imports grew 16.8%, bringing the country’s trade surplus to USD18.6 billion for the month, above expectations for a surplus of USD 15.05 billion.
Elsewhere on the Comex, gold for June delivery shed 0.3% to trade at USD1,468.95 a troy ounce, while silver for July delivery eased up 0.2% to trade at USD23.96 a troy ounce.
