Copper prices fell on Tuesday, on worries that China’s determination to stick with its strict COVID-19 rules could dampen economic growth and demand for metals.
Three-month copper prices on the London Metal Exchange fell 0.8% to $7,506 per tonne by 0214 GMT, and the most-traded November copper contract on the Shanghai Futures Exchange declined 0.9% to 62,650 yuan ($8,702.60) per tonne.
Chinese president Xi Jinping reiterated the validity of China’s zero-covid policy, which includes lockdowns and movement curbs to prevent the spread of coronavirus, at the Communist Party Congress, the country’s key political event.
Some market participants had previously hoped that China would ease its COVID-19 restrictions rules to support its economy, which has shown signs of slowing in the past months but cushioned by a raft of government supportive policies.
A sharp increase in ShFE copper inventories on Oct. 14 also dented sentiment. But tight supply, overall, of the metal in China continued to lend some support and cushion prices from steep falls.
Copper prices subdued as demand uncertainty offsets supply woes
Visible copper stocks in China, which includes inventories in Chinese bonded and ShFE warehouses, were 93,846 tonnes on Oct. 14, edging up from a record low, but still at low levels, exchange and SMM data showed.
ShFE aluminium fell 1.3% to 18,310 yuan per tonne, nickel shed 1.6% to 178,870 yuan per tonne, zinc was down 0.8% at 24,455 yuan per tonne and tin declined 1.3% to 167,210 yuan per tonne.
LME aluminium rose 0.7% to $2,245 per tonne, lead advanced 0.4% to $2,034.50 per tonne, tin increased 0.3% to $19,700 per tonne while zinc fell 0.4% to $2,856 per tonne.
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