RTRS: METALS-Copper at 3-week low as stocks rise, Fed steady
By Michael Taylor
LONDON, Sept 24 (Reuters) - Copper slipped to a three week low on Thursday, as demand worries dogged investors after inventory levels jumped and the Federal Reserve's statements on the U.S. economy and interest rates failed to boost sentiment.
Copper for three month delivery MCU3 on the London Metal Exchange was untraded in official rings, but bid at $6,090 a tonne from $6,126 at the close on Wednesday. The metal, used in power and construction, earlier touched $6,030, its lowest level since Sept. 2.
On Wednesday the U.S. Federal Reserve promised to keep interest rates low for a long time and upgraded its assessment of the U.S. economy. [ID:nN23390829]
But analysts said investors expected more reassurance and remained cautious on the global economic recovery, with U.S. jobs and home sales data eyed later, as world leaders meet at the G20 summit. [nN24427327]
"The Fed left people a little bit nonplussed," said David Thurtell, an analyst at Citigroup. "Maybe people were hoping they would say things were rosy again."
He added that LME stocks in the red metal, which jumped 8,925 tonnes to 340,875 tonnes, helped pressure prices lower.
Import numbers from China, the world's largest metals consumer, were also important to metals investors.
Data earlier this week showed China's refined copper imports fell 25 percent in August from the previous month but were still the seventh highest inflow on record. [ID:nHKG189580]
"China's refined copper and aluminium imports for August fell again and generated concerns that stronger OECD demand will not come in time to offset the slowdown in Chinese imports," ANZ said in a note.