LME declines despite dollar losses;Chinese concerns continue

摘要

The base metals prices on the London MetalExchange (LME) closed lower on Friday (Aug 21).According to commodities strategist Stephen Briggs,BNP Paribas, LMEX hit a fresh 73-month low onWednesday (down 48% from its peak of Feb'11) andbase metal prices ended the week down 3% w/w onaverage. This was despite USD losses and lower USbond yields, often sources of support. Shock wavesfrom China continued, culminating in a very poor flashPMI, while emerging market currency weakness isputting more downward pressure on production costs.Copper bore the brunt for much of the week, at worstdown 51% from its Feb'11 peak, but aluminium andnickel producers are in far worse shape.