Copper prices fell on Thursday on prospects of prolonged interest rates hikes in the United States stalling economic growth and crimping demand for the metal.
The most-traded March copper contract on the Shanghai Futures Exchange fell 0.6% at 69,950 yuan ($10,164.05) a tonne by 0530 GMT, while three-month copper on the London Metal Exchange was down 0.2% at $9,090.50 a tonne.
Minutes from the US Federal Reserve’s latest meeting showed policymakers will likely stick with interest rate increases to tame inflation, but favoured slowing the pace of the hikes.
Copper retreats on concern over rate hikes
The US dollar stood near a seven-week high against the euro and the Australian dollar on prospects of higher-for-longer rates, making greenback-priced metals more expensive for holders of other currencies.
Cushioning further decline in prices of metal are expectations for a demand recovery in top consumer China, after it reopened its economy, but real consumption is not expected to pick up until next month or in the second quarter.
“The resumption rate of domestic (Chinese) infrastructure projects has greatly accelerated… However, the actual performance of spot copper consumption is still weak, and high prices restrained consumption,” said Jinrui Futures in a report.
LME aluminium dipped 0.1% to $2,415 a tonne, lead declined 0.3% to $2,097 a tonne, while tin rose 0.5% to $26,970 a tonne and zinc rose 0.4% to $3,068 a tonne.
SHFE aluminium fell 0.4% to 18,720 yuan a tonne, nickel dropped 2.8% to 205,090 yuan a tonne, tin declined 1.7% to 216,800 yuan a tonne, zinc decreased 0.5% to 23,465 yuan a tonne and lead was down 0.5% to 15,345 yuan a tonne.
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