LONDON: Copper prices in London fell on Monday, dragged down by uncertainty over demand from China and as the markets processed the sudden collapse of startup-focused Silicon Valley Bank (SVB).
Three-month copper on the London Metal Exchange fell 0.9% to $8,788.0 a tonne by 1034 GMT, having hit $8,950 a tonne earlier in the session, its highest since March 7.
“Concerns over subdued demand from China following the end to COVID-19 restrictions keep weighing on the metals complex,” ING analyst Ewa Manthey said.
“The direction of U.S. interest rates is another key question for the complex with the data released last week painting a mixed picture for the economy. Key U.S. inflation data will be in the spotlight later this week for more clues on the Fed’s interest rates path,” Manthey added.
Copper prices fell despite support from a weaker dollar, which makes dollar-priced metals cheaper to holders of other currencies.
Copper eases again on concern about growth ahead of jobs data
The dollar fell on Monday on heightened expectations the Federal Reserve will be less aggressive with monetary policy, while authorities acted to limit the fallout from the SVB collapse.
The biggest U.S. bank failure since the 2008 financial crisis, it led bank shares in Europe and Asia to plunge.
Metals supply, meanwhile, should grow after a major mine in Peru resumed transportation of copper concentrate after unrest.
The most-traded April copper contract on the Shanghai Futures Exchange rose 0.2% to 69,270 yuan ($10,038.69) a tonne.
LME aluminium fell 0.8% to $2,295.5 a tonne, zinc was down 0.9 at $2,911.5, lead lost 0.7% at $2,062.5, while tin climbed 0.6% to $23,055.0 and nickel rose 1.8% to $23,090.0
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