Prices of most base metals fell on Monday after China set a lower-than-expected economic growth target, dampening some hopes of a robust demand recovery for the sector.
Three-month copper on the London Metal Exchange was down 0.8 percent at $8,916.50 a ton and the most-traded April copper contract on the Shanghai Futures Exchange edged down 0.1 percent at 69,330 yuan ($10,029.51) a ton.
Metals prices have been suppressed by the prospects of higher US interest rates and a stronger dollar, which makes greenback-priced metals more expensive for holders of other currencies.
Expectations of a strong Chinese economic rebound have been supporting metals prices, but a modest growth target of around 5 percent for from the world’s biggest consumer of the metal could mean less-than-expected actual consumption for the commodity.
This year’s growth target of around 5 percent was at the low-end of expectations, as policy sources had recently told Reuters a range as high as 6 percent could be set. It is also below last year’s target of around 5.5 percent.
LME aluminum fell 0.8 percent to $2,387 a ton, zinc lost 1.4 percent to $3,035 a ton, tin decreased 1.8 percent to $24,300 a ton, while lead edged up 0.1 percent to $2,122 a ton. – Reuters
