LONDON: Copper prices fell to their two-week low on Tuesday due to a stronger dollar, concerns about global economic growth and fears over inflation fuelled by lingering uncertainty over the Middle East conflict.
Benchmark three-month copper on the London Metal Exchange was 1.7percent lower at USD12,985 a metric ton in official open-outcry trading after hitting USD12,937.5, for its lowest since April 13. With the warring sides of two-month-long Middle East conflict seemingly far apart, oil and other supplies through the critical Strait of Hormuz heavily restricted, the uncertainty weigh on the demand outlook for growth-dependent copper, said Ewa Manthey, commodities strategist at ING.
Attention this week is on comments from monetary policymakers on pricing pressure with the US Federal Reserve expected to hold rates unchanged.
LME aluminium was down 1.2percent at USD3,535 a ton in official activity after hitting its one-week low of USD3,352.5. Providing support to the metal are disrupted exports from the Middle East producers, which usually account for 9percent of the annual global supply.
Signalling tightness for near-term delivery, the LME cash aluminium contract was last at a premium of USD59 a ton over the three-month benchmark compared with the pre-war discount of USD12. Nickel rose0.6percent to USD19,220. It hit USD19,540, highest since June 2024, on Monday due to worries about supplies from top producer Indonesia and disrupted supplies of sulphur needed to make the metal from the Middle East.
Among other LME metals, zinc fell 1.1percent to USD3,360. Swedish miner Boliden said on Tuesday production at its Garpenberg zinc mine will be resumed in the second quarter at a low pace. Lead lost 0.5percent to USD1,949.5, while tin was steady at USD49,350.
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