Copper prices fell on Tuesday in London as a weaker yuan against the dollar made greenback-priced assets more expensive to holders of the currency in China, the world’s biggest metals consuming market.
Three-month copper on the London Metal Exchange fell 0.5% to $7,515.50 a tonne by 0242 GMT, and the most-traded December copper contract on the Shanghai Futures Exchange was unchanged at 62,750 yuan ($8,589.07) a tonne.
The Chinese central bank set the lowest mid-point since 2008, causing China’s onshore yuan to slid to a near 15-year low and the offshore yuan weakened to a record low.
LME aluminium edged up 0.1% to $2,178 a tonne, zinc declined 0.1% to $2,954 a tonne and tin rose 0.8% to $18,600 a tonne. SHFE aluminium fell 0.7% to 18,475 yuan a tonne, zinc was down 0.65% to 24,490 yuan a tonne, nickel climbed 1.1% to 187,840 yuan a tonne and tin advanced 0.6% to 165,380 yuan a tonne.
The premium of LME cash copper over the three-month contract rose to $133 a tonne on Monday, the highest since November 2021, indicating tightness of immediately available supply.
Global refined lead and zinc markets are likely be in a deficit in both 2022 and 2023, the International Lead and Zinc Study Group said.