Base metals prices fell on Monday over concerns that rising interest rates in the United
States could eventually lead to lesser demand for metals.
The three-month copper on the London Metal Exchange fell 0.1 percent to $8,790.50 a ton while the most-traded May copper contract on the Shanghai Futures Exchange declined 0.5 percent to 68,590 yuan ($9,936.69) a ton.
Strong business activities in the US and the Euro zone reinforced bets of the Federal Reserve raising interest rates, as markets cautiously entered a week packed with economic data and central bank meetings.
Higher interest rates could lead to a stronger dollar, which makes greenback-priced metals more expensive to holders of other currencies.
Meanwhile, an uneven economic recovery in China also weighed on demand for metals in the world’s biggest metals consumer.
Yangshan copper premium to $23 a ton, its lowest since March 10.
LME aluminum shed 0.3 percent to $2,389.50 a ton, nicke dropped 1.5 percent to $24,110 a ton, zinc declined 0.6 percent to $2,703.50 a ton, lead decreased 0.7 percent to $2,145 a ton and tin lost 0.9 percent to $26,355 a ton.
SHFE nickel tumbled 3.4 percent to 181,600 yuan a ton, aluminum declined 0.8 percent to 18,850 yuan a ton, zinc dropped 1.7 percent to 21,615 yuan a ton, tin decreased 1.7 percent to 211,820 yuan a ton and lead fell 0.3 percent to 15,295 yuan a ton. — Reuters
