London copper prices rose for a second session on Tuesday, supported by worries about supplies from top producer Chile, although a stronger dollar and lingering concerns over Chinese demand kept gains in check.
Chile’s copper production fell 7.5% in February to 394,700 tonnes, the State Chilean Copper Commission (Cochilco) said in a report on Monday.
Fundamentals
Three-month copper on the London Metal Exchange was up 0.2% at $10,492 a tonne, as of 0224 GMT, after a 1.1% gain on Monday.
The US dollar held firm near one-week high on talks of more sanctions against Moscow following international outrage over Ukraine civilian killings.
London copper eases on China demand worries, Shanghai nickel falls
A strong dollar makes greenback-denominated metals more expensive to buyers using other currencies.
Trading is expected to be subdued with markets in top metals consumer China still closed for a public holiday, but traders kept a close watch on economic implications due to a rapid surge in domestic COVID-19 cases.
The major Chinese financial centre of Shanghai extended restrictions on transportation on Tuesday after a day of intensive city-wide testing saw new cases surge to more than 13,000, with no end to the lockdown yet in sight.
The London Metal Exchange said on Monday it would commission an independent review into the events that led to chaos in the nickel market last month.