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METALS-Base metals dip as partial lockdowns in China fuel demand concerns

reuters.com · 06/09/2022 23:02
METALS-Base metals dip as partial lockdowns in China fuel demand concerns

Adds comment, details, updates prices

By Brijesh Patel

- Copper and other industrial metals fell on Friday, as renewed COVID-19 restrictions in top consumer China rekindled demand worries, while a stronger dollar also weighed on the market.

Three-month copper on the London Metal Exchange CMCU3 was down 0.4% at $9,579.50 a tonne, as of 0242 GMT, after dropping 1.2% in the previous session. Still, the contract has gained nearly 1% so far this week.

The most-traded July copper contract in Shanghai SCFcv1 fell 0.5% to 72,480 yuan ($10,828.25) a tonne.

LME aluminium CMAL3 was down 0.2% at $2,756.50 a tonne, zinc CMZN3 was flat at $3,763.50, lead CMPB3 fell 0.6% to $2,182, and tin CMSN3 slipped 0.9% to $36,415.

Shanghai and Beijing went back on fresh COVID-19 alert on Thursday after parts of China's largest economic hub imposed new lockdown restrictions and the city announced a round of mass testing for millions of residents. nL1N2XW01L

"This latest setback raises questions about whether the reopening will be as smooth as hoped, thus putting at risk the pickup in economic activity across the entire country," ANZ analysts said in a note.

Risky assets also fell as the European Central Bank's rate-hike outlook unnerved investors amid heightened concerns about global slowdown. MKTS/GLOB

DOLLAR: The dollar was at a three-week high against its rivals, making greenback-denominated metals more expensive for buyers using other currencies. USD/

POLL: The U.S. Federal Reserve will hike its key interest rate by 50 basis points in June and July, according to a Reuters poll, with rising chances of a similar move in September. nL4N2XV2G3

DATA: China's factory-gate inflation cooled in May, official data showed, depressed by weak demand for steel, aluminium and other key industrial commodities due to tight COVID-19 curbs. nAZN077VH5

NICKEL: Brazilian miner Vale SA VALE said on Thursday it had completed studies for potentially developing a nickel sulfate operation in Quebec, Canada, with annual capacity seen at 25,000 tonnes. nL1N2XW11Z

COPPER: A group of indigenous Peruvian communities on Thursday agreed to temporarily lift a protest against MMG Ltd's MMLTF Las Bambas copper mine that forced the company to halt operations for more than 50 days. nL1N2XW2OP

PRICES: Shanghai aluminium SAFcv1 fell 1.3%, zinc SZNcv1 was down 1.4%, nickel SNIcv1 lost 2.2%, lead SPBcv1 fell 1.4%, and tin SSNcv1 eased 0.4%.

($1 = 6.6936 Chinese yuan)

(Reporting by Brijesh Patel in Bengaluru; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)

((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net))

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