Copper prices fell on Tuesday in London as the dollar bounced back slightly from a five-week low hit in the previous session and amid fears of a looming global financial crisis.
The dollar regained some ground on Tuesday but was pinned near a five-week low as traders tiptoed back into riskier assets after UBS’ state-backed takeover of Credit Suisse allayed some fears of a widespread, systemic banking crisis.
Three-month copper on the London Metal Exchange fell 0.4% to $8,662.50 a tonne by 0247 GMT, while the most-traded May copper contract on the Shanghai Futures Exchange rose 0.5% to 67,350 yuan ($9,788.53) a tonne, tracking overnight gain in London.
Copper prices rise in volatile market
The LME cash copper contract was trading at a premium of $3.75 a tonne over the three-month contract, flipping from a discount zone that has lasted since Jan. 19, indicating tightening nearby supply.
The front month SHFE copper contract has been trading at a premium over the three-month contract since March 13, also indicating tightening nearby supply, as demand of the metal in China improved.
LME aluminium rose 0.2% to $2,278 a tonne, lead fell 0.4% to $2,110 a tonne while tin rose 0.3% to $22,810 a tonne.
SHFE aluminium edged down 0.1% at 18,145 yuan a tonne, nickel dropped 2.6% to 173,310 yuan a tonne, zinc fell 0.3% to 22,505 yuan a tonne, lead declined 0.2% to 15,350 yuan a tonne and tin shed 0.2% to 184,560 yuan a tonne.
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