CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Base metals rebound amid Evergrande debt spillover fears

By Fitri Wulandari

06:12, 21 September 2021

A stack of copper wires
A stack of copper wires – Photo: Shutterstock

Industrial metals rebounded on Tuesday, but sentiment remained bearish on worries about the impact of a debt crisis that Chinese property firm, Evergrande, on-demand for base metals.

Copper on the London Metal Exchange rose by 0.60% to $9,066.50 a tonne. However, the metal used in construction material led to the drop in industrial metals on Monday, closing down more than 2% at $9,012.50 a tonne. Copper had at one point dropped to below $9,000 on Monday’s trading. 

Nickel gained 0.37% to $19,022.5 a tonne, after closing down 2.26% to $18,952.5 a tonne. Tin gained 0.15%, lead rose by 0.49%, and zinc traded 0.51% higher.

Downside risks

“The unfolding of Evergrande’s debt crisis bears a warning of greater risks to the broader financial market and highlights the downside risks for metals demand from the property sector in the longer term,” ING Group wrote in its note.

Aluminium extended losses, trading 0.17% lower at $2,856.75 a tonne. 

Oil - Crude

71.69 Price
+2.140% 1D Chg, %
Long position overnight fee -0.0203%
Short position overnight fee -0.0017%
Overnight fee time 21:00 (UTC)
Spread 0.04

Gold

1,963.94 Price
-0.630% 1D Chg, %
Long position overnight fee -0.0183%
Short position overnight fee 0.0101%
Overnight fee time 21:00 (UTC)
Spread 0.30

XRP/USD

0.52 Price
+1.830% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.00474

US100

14,560.80 Price
+0.560% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 1.8

Evergrande’s default risk came amid bearish demand for steel and raw material after the Chinese government’s move to curb steel production to reduce air pollution in the 2022 Winter Olympics. 

Iron ore extend losses

Iron ore on the Singapore Exchange dropped 0.61% to $93 a tonne.

“The market is likely to remain jittery amid lack of guidance, as China markets are closed until Wednesday. In addition, concerns around a spill-over impact on China’s property market are deepening,” said analysts at ANZ Research on Tuesday’s note. 

ANZ Research noted that investors in base metals remain cautious ahead of Evergrande’s two principal scheduled repayments this week.

Read more: Nickel dips as China’s emission policy hurts metals demand

Rate this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 535.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading