Industrial metals fall on global growth concerns
Industrial metals were mostly lower on Wednesday on global growth concerns, but losses in copper were capped following reports about “progress” being made to resolve an issue that has led to the suspension of operations at a mine in Peru.
Three-month copper on the London Metal Exchange CMCU3 was down 0.3% at $9,429 a tonne, as of 0630 GMT.
The most-traded July copper contract on the Shanghai Futures Exchange SCFcv1 fell 0.6% to 71,340 yuan ($10,695.65) a tonne.
“Negativity returned to risk markets as economic data reinforced growth concerns,” ANZ analysts said in a note.
Latest key indicators reinforce concerns about how supply chain bottlenecks, high inflation, and rising interest will impact global growth, they said.
In top metals consumer China, COVID-19 lockdowns kept markets on edge, largely unexcited about Beijing’s attempts to shore up the domestic economy through additional stimulus measures.
PERU: The leader of a Peruvian indigenous community, whose protest led MMG’s 1208.HK Las Bambas copper mine to suspend operations over a month ago, said on Tuesday that “progress” has been made toward a solution to the crisis.
DOLLAR: The dollar’s rally to two-decade highs appears to have stalled, with doubts growing on whether the U.S. economy will prove as resilient and monetary policy as aggressive as previously expected.
PRICES: LME aluminium CMAL3 was down 1% at $2,873.50 a tonne, zinc CMNI3 fell 0.4% to $3,774, lead CMPB3 shed 0.2% to $2,164, but tin CMSN3 was up 0.7% at $34,340.
Shanghai aluminium SAFcv1 dropped 0.9%, nickel SNIcv1 slipped 0.9%, lead SPBcv1 lost 0.5%, tin SSNcv1 tumbled 4%, but zinc SZNcv1 edged up 0.2%.
Source: Reuters (Reporting by Enrico Dela Cruz in Manila)