Copper prices in London edged down on Tuesday as concerns over tepid consumption in top consumer China dented risk sentiment, even as traders and investors hope for a rebound in demand.
Three-month copper on the London Metal Exchange fell 0.7% to $9,080 a tonne by 0311 GMT, retreating from its highest in more than two weeks hit in the previous session.
The most-traded March copper contract on the Shanghai Futures Exchange rose 1% to 69,720 yuan ($10,151.87) a tonne, tracking overnight gain in London.
Hopes for a demand recovery in top consumer China post COVID-19 have supported prices, but some market participants now expect the rebound to kick in by March, disappointing those who had hoped for an early rebound in February.
Higher copper prices have also discouraged some downstream buyers to purchase the metal in large volume, and they are waiting for supportive policy from the Chinese government to boost demand for their products.
LME copper prices leaped about 15% in the first two weeks of January, then lost about 9% within a month and have since been in rangebound in between $8,700 and $9,200.
LME copper biased to rise towards $9,229 this week
LME aluminium dipped 0.8% to $2,438.50 a tonne, zinc fell 0.6% to $3,107 a tonne, lead shed 0.4% to $2,145.50 a tonne while tin rose 0.2% to 26,750 yuan a tonne.
China’s Yunnan province has asked aluminium producers to further cut their electricity usage amid a power supply crunch, potentially cutting annual aluminium output capacity by about 740,000 tonnes, Shanghai Securities News said on Monday.
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