Copper trades steadily despite price fall

ZAMBIA’S major export earner, copper, yesterday witnessed a price fall on the global market but maintained its steadier trend, fluctuating below the US$6,000 mark.
London Metal Exchange (LME) copper had slipped 0.4 percentage point to US$5,882.50 a tonne, trimmed 0.6 percentage point gain from the previous session, when prices hit their highest since March 20 at US$5,927.50.
Market players attributed the copper price fall on the global market to low-volume trade.
Reuters reports that with the United States (US) economy having now largely attained a full recovery from recession, the Federal Reserve can raise interest rates three or more times this year.
“London copper slipped on Thursday in low-volume trade as the dollar held gains on brighter economic signals from the US and traders waited for further US and China economic cues for direction,” Reuters reports.
On the local currency market, the Kwacha is likely to recover its losses against the dollar, supported by yesterday’s treasury bill auction.
However, Cavmont says the local currency came under pressure against the dollar on Wednesday, after a wane in supply which was anticipated from exporters.
“The local unit began trading on Wednesday at K9.50 and K9.55, but was later being quoted at K9.55 and K9.60 by noon,” the bank says in its market report.
The bank also says the Bank of Zambia (BoZ) was still conducting open market operations (OMO) to sell government securities in the open market to expand the amount of money in the banking system.
BoZ was on the OMO looking to withdraw K900 million from the money market whose liquidity levels stood at K877.12 million.

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