HANOI-Most base metals prices fell on Tuesday, as a weaker yuan reduced the purchasing power of Chinese buyers, while high inventories and weak demand pressured aluminum prices.
Three-month copper on the London Metal Exchange (LME) fell 0.4 percent to $9,858.50 per metric ton, while the most-traded July copper contract on the Shanghai Futures Exchange (SHFE) dropped 2.3 percent to 79,890 yuan ($11,014.90) a ton.
China’s yuan fell to a near seven-month low against the US dollar, as investors returned from a long weekend break to play catch-up with broad greenback strength in overseas markets.
The LME cash copper contract on Monday traded at a $133.14-a-ton discount to the three-month contract, the biggest discount since May 8, indicating that there was no tightness of nearby supply.
LME aluminum eased 0.3 percent to $2,565 a ton, zinc fell 0.3 percent to $2,841.50, tin edged down 0.3 percent at $31,920, while nickel rose 0.8 percent to $18,025 and lead increased 0.2 percent to $2,212.
The discount of the LME cash aluminum contract to the three-month contract expanded to $62.44 a ton, the biggest discount since August 2007, after inventories more than doubled in just a month to 1.1 million tons.
