SHANGHAI: Base metals in China were mostly lower on Monday, with uncertainty around the Omicron COVID-19 variant dampening risk sentiment and the London Metal Exchange closed for the Christmas holiday.

The most-trade February copper contract on the Shanghai Futures Exchange ended daytime trading 0.4% lower at 69,530 yuan a tonne, after scaling its highest level in more than three weeks on Friday.

Analysts expect metal prices to remain mostly rangebound for the rest of the year as many investors have taken a break until after the New Year holidays, while worries about Omicron also prompt caution.

The LME will remain shut on Tuesday as well, for the Boxing Day holiday.

FUNDAMENTALS

Zinc shed 1.7% to 23,955 yuan a tonne, nickel dropped 0.3% to 147,900 yuan a tonne, and lead lost 0.5% to 15,375 yuan a tonne.

Bucking the trend, tin rose 0.3% to 288,120 yuan a tonne.

Aluminium slumped 2.5% to 19,665 yuan a tonne, extending its losses after scaling a seven-week peak on Dec. 23.

A Japanese aluminium buyer has agreed to pay a global producer a premium of $177 per tonne over the benchmark price for shipments in January to March, down 20% from the current quarter, two sources directly involved in the pricing talks said on Friday.

Profits at China’s industrial firms grew at a much slower pace in November, official data on Monday showed, pressured by tumbling prices of some raw materials, a faltering property market and weaker consumer demand.

Thousands of flights were cancelled over the past three days in the United States, where the Omicron variant has been rapidly spreading, as COVID-19 thinned out the number of available crews, while several cruise ships had to cancel stops after outbreaks on board.

In China, the world’s top metals consumer, most new infections were reported in the northwestern city of Xian, which has entered a fifth day of a lockdown.