LONDON: Copper prices declined on Thursday as the re-imposition of some lockdown restrictions in China fuelled renewed worries about demand in the world’s top metals consumer.
Three-month copper on the London Metal Exchange slipped 1.3% to $9,600 a tonne by 1600 GMT after rising by 0.3% on Wednesday.
U.S. Comex copper futures fell 1.9% to $4.372 a lb.
Shanghai and Beijing went back on fresh COVID-19 alert after parts of China’s largest economic hub started imposing new lockdown restrictions while the most populous district in the Chinese capital shut entertainment venues.
“The latest round of restrictions are targeted, they’re not as widespread as previously, but when people see the headlines, the initial reaction would be to sell the rallies we had recently,” said Xiao Fu, head of commodity market strategy at Bank of China International.
LME copper has bounced about 8% after touching seven-month lows on May 12.
Xiao expects a moderate economic recovery in China in the third quarter and pointed to Thursday’s positive trade data and said port activity in China had also increased substantially.
China’s exports grew at a double-digit pace in May, data showed, shattering expectations in an encouraging sign for the world’s second-biggest economy.
The most-traded July copper contract in Shanghai ended daytime trading up 0.2% at 72,810 yuan ($10,896.44) a tonne.
Metals were also hit by gloomy sentiment in wider financial markets after the European Central Bank signalled it would hike euro zone interest rates next month for the first time in a decade.
China’s May copper imports rose 4.4% from the same month a year earlier, data showed.
Brazilian miner Vale SA said it had completed studies for potentially developing a nickel sulfate operation in Quebec, Canada, with annual capacity seen at 25,000 tonnes.
LME aluminium shed 2.2% to $2,758.50 a tonne, zinc fell 1.5% to $3,765, nickel lost 2.8% to $28,035, lead fell 2% to $2,188, and tin eased 0.7% to $36,835.
Comments
Comments are closed.