Band Eric Onstad
LONDON, September 28 (Reuters) – Copper prices fell on Tuesday amid a stronger dollar and concerns about the impact of power cuts on major metal consumers in China, where the economy has already weakened.
Three month copper CMCU3 on the London Metal Exchange fell 0.9% to $ 9,274 by 10:00 GMT after rising 0.3% on Monday.
Copper has eased from a record high of $ 10,747.50 reached in May, but is still up 20% so far this year.
“We have the risk of a sudden surge in the dollar, which will weigh on the market,” said Gianclaudio Torlizzi, partner at the consultancy firm T-Commodity in Milan.
“And we have a worsening situation in China due to a double shock – the credit crunch from Evergrande and a shock from the energy crisis. It’s a very difficult market to trade, so I think that a lot of people will be left on the sidelines. “
In China, a coal supply shortage, tougher emissions standards and strong demand from manufacturers and industry have pushed coal prices to record highs and triggered widespread restrictions on use.
The US dollar hit its highest level in more than five weeks on the rise in bond yields, making dollar-denominated metals more expensive for buyers using other currencies. FRX /
* Profit growth for Chinese industrial companies slowed for a sixth month, with factories battling high commodity prices, COVID-19 outbreaks and parts shortages.
* nickel LME CMNI3 was the biggest loser, slipping 2% to $ 18,570 after losing more than 2% on Monday. “The policy of reducing electricity affects part of the consumption of nickel downstream,” brokerage firm Huatai Futures said in a note.
* tin LME CMSN3 rebounded 0.7% to $ 35,340 per tonne, after falling more than 4% on Monday after restrictions on electricity consumption in China also reduced demand for refined tin.
* LME aluminum CMAL3 gained 1% to $ 2,911, zinc CMZN3 added 0.2% to $ 3,073 and lead CMPB3 climbed 0.6% to $ 2,175.
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(Additional reporting by Mai Nguyen in Hanoi and Tom Daly; editing by David Evans)
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