BEIJING: London copper prices were on course for a drop this week, amid concerns over the outlook for global demand and as hawkish remarks from US Federal Reserve officials sent the dollar higher.
Three-month copper on the London Metal Exchange was up 0.4% at $8,145.5 a tonne as of 0437 GMT.
It has lost 4.1% so far this week, retreating from a five-month high last Friday. The most-traded December copper contract on the Shanghai Futures Exchange slid 0.7% to 65,880 yuan ($9,245.02) a tonne.
Asian stock markets were cautious and the dollar was set for a weekly gain, after comments from Fed officials, in the wake of employment data still showing a tight US labour market, dashed investors’ hopes for less aggressive monetary policy.
A stronger dollar makes the greenback-priced metal costlier for buyers holding other currencies. German industrial group Thyssenkrupp warned on Thursday that its sales and profit would “nosedive” next year as high inflation and energy costs were compounded by an expected recession in Europe.
Meanwhile, top metals consumer China struggled with rising COVID-19 cases this week, including in big cities like Beijing and Guangzhou, fanning concerns about its economic performance. “Orders from buyers have remained moderate since September.
The current sentiment is weak as it’s hard to find any bright spot of demand next year,“ a Chinese copper tube producer said.
China produced 953,000 tonnes of refined copper in October, up 10.9% from a year ago, according to data from the National Bureau of Statistics.
Copper slips on renewed worries about China COVID curbs
Among other metals, LME zinc climbed 1.1% to $3,021 a tonne, aluminium gained 0.4% to $2,401.5 a tonne, while tin eased 1% to $22,350 a tonne.
SHFE aluminium rose 1.5% to 19,165 yuan a tonne, nickel declined 0.8% to 199,360 yuan a tonne, tin eased 0.4% to 184,300 yuan a tonne, zinc nudged 0.3% to 24,320 yuan a tonne.
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