Copper and aluminium prices dropped on Monday, as tightening COVID-19 restrictions in top metals consumer China and a recent batch of weak economic readings from major nations highlighted worries over demand for the metals.
Benchmark three-month copper CMCU3 on the London Metal Exchange (LME) was down 1.8% at $9,250 a tonne, as of 0722 GMT, its lowest since Dec. 15.
LME aluminium CMAL3 slipped 1.3% to $2,804 a tonne, its lowest since Jan. 4.
The most-active June copper contract on the Shanghai Futures Exchange SCFcv1 ended daytime trading down 1% at 71,440 yuan ($10,633.17), after dropping to its lowest since March 16.
“No definitive light at the end of the China lockdown tunnel,” said Stephen Innes, managing partner at SPI Asset Management.
“With more ominous aggressive US rate hike clouds looming on the horizon, inflation beneficiaries like hard commodities are getting pressured lower.”
Shanghai and Beijing, wrestling with their worst COVID-19 outbreaks since the epidemic began, further tightened curbs on their residents this week, blocking them from leaving their homes and compounds, sparking new anger and confusion.
Concerns over tightening lockdowns in world’s second-largest economy hurting global economic growth also dented appetite for risky assets among investors.
* China’s copper imports in April fell 4% from the same month a year earlier, customs data showed, as lockdowns across the country hurt manufacturing activity and consumption.
* Data showed China’s factory activity contracted at a sharper pace, while U.S. factory activity grew at its slowest pace in more than /2 years in April.
* The dollar rose 0.2% to firm near a 20-year high against its rivals on bets of aggressive policy tightening, making greenback-denominated metals more expensive for buyers using other currencies. /
* The Peruvian government postponed a meeting scheduled for Saturday with the indigenous communities protesting Las Bambas copper mine due to protest leaders taking too long to respond.
PRICES: LME zinc CMZN3 fell 1.1% to $3,732.50 a tonne, zinc CMZN3 shed 1% to $3,732, lead CMPB3 dipped 0.8% to $2,214, nickel CMNI3 lost 1.8% to $29,520 and tin CMSN3 slipped 2.3% to $38,450.
Shanghai aluminium SAFcv1 fell 2.4%, zinc SZNcv1 was down 3.2%, nickel SNIcv1 dipped 3.3%, lead SPBcv1 fell 1.4% and tin SSNcv1 dropped 4.7%.
Source: Reuters (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)