Copper extended losses to a third session on Thursday as concerns grew that the global economy might plunge into a recession and dampen demand for industrial metals.
Three-month copper CMCU3 on the London Metal Exchange was down 0.5% at $9,328.50 a tonne, as of 0536 GMT. The most-traded July contract on the Shanghai Futures Exchange SCFcv1 fell 0.2% to 71,300 yuan ($10,581.78) a tonne.
Copper is often used as a gauge of global economic health. Prices of most other base metals also fell on both the Shanghai and London exchanges.
The gloomy economic outlook for top metals consumer China as it struggles to contain COVID-19 outbreaks, and ongoing policy tightening by global central banks kept markets on edge.
“The lockdowns in China are part of the growing narrative around the risk of a global recession,” said Rodrigo Catril, a National Australia Bank market strategist.
Chinese Premier Li Keqiang held a rare high-profile meeting on Wednesday to support the economy, saying the country would strive to achieve reasonable growth in the second quarter and stem rising unemployment, the official Xinhua news agency reported.
CHINA: China’s central bank said on Thursday it would promote more credit for smaller firms and boost financial institutions’ confidence to lend funds, as policymakers struggle to get the COVID-stricken economy back on track.
COPPER: The world refined copper market showed a 25,000 tonne deficit in March, compared with a 95,000 tonnes surplus in February, the International Copper Study Group said.
PERU: Talks between indigenous Peruvian communities and the government to end a protest that has halted operations at MMG Ltd’s 1208.HK Las Bambas copper mine ended without agreements on Wednesday.
PRICES: LME aluminium CMAL3 fell 0.4% to $2,863.50 a tonne, zinc CMZN3 shed 0.6% to $3,729.50, lead CMPB3 dropped 0.3% to $2,098, and tin CMSN3 slid 1.3% to $33,615.
Shanghai aluminium SAFcv1 rose 0.6%, zinc SZNcv1 slipped 0.1%, lead SPBcv1 lost 1.5%, tin SSNcv1 tumbled 4.5%, while nickel SNIcv1 gained 0.7%. Source: Reuters (Reporting by Enrico Dela Cruz in Manila; editing by Uttaresh.V and Subhranshu Sahu)