Copper slipped and nickel succumbed to profit-taking on Monday as COVID-19 curbs in top metals consumer China clouded demand prospects and added to concerns about supply disruptions, while a firm US dollar also weighed on prices.
Heightened coronavirus restrictions in China, with the financial hub of Shanghai launching a two-stage lockdown, could further dampen growth outlook for the world’s second-biggest economy.
Three-month copper on the London Metal Exchange was down 0.6% at $10,208 a tonne by 0408 GMT, while the benchmark copper contract on the Shanghai Futures Exchange shed 0.7% to 73,090 yuan ($11,466.36) a tonne.
Shanghai nickel tumbled as much as 15% to 213,180 yuan a tonne, after posting on Friday a record weekly gain.
Copper, aluminium slip on profit-taking in thin trade
“COVID-19 outbreaks in multiple cities have put China’s metal demand in check,” ING commodity strategists said in a note.
“This week, markets and investors will continue to monitor the Covid impact on metals supply and demand.”
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