Copper prices fell on Wednesday, as bets of big US rate hikes following hawkish comments from Federal Reserve officials, and a recent batch of weak economic readings from China put focus back on global economic growth concerns.
Benchmark three-month copper on the London Metal Exchange (LME) was down 0.6 percent at $9,306 a ton, after hitting a more than one-week high of $9,434 on Tuesday.
The most-active June copper contract on the Shanghai Futures Exchange edged 0.1 percent lower to 71,600 yuan ($10,606.31) a ton by the midday break.
“There is some selling pressure as China’s economic data has come on the lower side owing to a forced lockdown in Shanghai,” said Jigar Trivedi, a commodities analyst at Mumbai-based broker AnandRathi Shares.
“Also, the dollar is rebounding after the Fed chair’s statement to continue with rate hikes.”
Fed Chair Jerome Powell on Tuesday pledged that the US central bank would ratchet interest rates as high as needed to kill a surge in inflation that he said threatened the foundation of the economy. – Reuters
