LME copper set for first weekly loss in six on credit squeeze, price cap fears

05/13/2021 | 11:43pm

HANOI, May 14 (Reuters) - London copper prices fell on Friday and were on track for their first weekly decline in over a month, as worries of tightening credit and potential commodities price cap in China dampened sentiment.

Three-month copper on the London Metal Exchange dipped 0.2% to $10,324 a tonne by 0318 GMT, down 0.9% on a weekly basis, its first decline since the week ended April 2.

The most-traded June copper contract on the Shanghai Futures Exchange fell 1.3% to 75,000 yuan ($11,634.40) a tonne.

China's new bank loans fell more than expected in April while money supply growth slowed to a 21-month low, as the central bank gradually scales back pandemic-driven stimulus to reduce debt and financial risks in hot areas of the economy.

Earlier this week, China's state council said the country, the world's biggest metals consumer, will monitor changes in overseas and domestic markets and effectively cope with a fast increase in commodity prices, without specifying how.

Both copper contracts hit their record high on Monday.

FUNDAMENTALS

* LME aluminium rose 0.5% to $2,463.50 a tonne, nickel increased 0.3% to $17,370 a tonne and zinc advanced 0.3% to $2,928.50 a tonne.

* In Shanghai, aluminium fell 0.7% to 19,575 yuan a tonne, nickel dropped 1.5% to 128,500 yuan a tonne while lead declined 2% to 15,100 yuan a tonne.

* Russian metals producer Nornickel has resumed full operations at its nickel-copper Oktyabrsky mine hit by flooding this year.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Japanese shares led a rebound in Asian markets, building on the lead from investors on Wall Street snapping up stocks that would benefit most from an economic recovery.

DATA/EVENTS (GMT)

0630 India WPI Inflation YY April

1230 US Retail Sales MM April

1315 US Industrial Production MM April

1400 US U Mich Sentiment Prelim May

($1 = 6.4464 yuan) (Reporting by Mai Nguyen; Editing by Rashmi Aich)

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