Copper prices fell on Thursday on worries of higher US rates, a weaker-than-expected Chinese demand rebound, and a risk-off sentiment amid issues in the banking sector.
Three-month copper on the London Metal Exchange declined 0.8 percent to $8,488.50 a ton while the most-traded June copper contract on the Shanghai Futures Exchange fell 0.9 percent to 66,490 yuan ($9,603.80) a ton.
China’s industrial firms’ profits shrank at a slightly slower pace in January-March but the decline remained in the double-digits as the economy struggled to fully recover despite the country’s exit from its zero-COVID policy.
Copper bulls have been betting on a strong demand recovery from top metals consumer China, but the rebound has so far been relatively short-lived and weaker than expected.
Prospects of higher US interest rates could dampen the global economic growth and increased the likelihood of a stronger dollar, making greenback-priced metals more expensive to holders of other currencies.
Denting sentiment further were troubles from the US banking sector.
China’s demand is expected to be even weaker next week as the country enters a May 1-3 holiday.
LME aluminum edged down 0.2 percent to $2,322.50 a ton, nickel declined 0.2 percent to $23,600 a ton, zinc shed 0.9 percent to $2,622 a ton, tin lost 0.9 percent to $25,520 a ton while lead rose 0.1 percent to $2,107 a ton.
SHFE aluminum fell 1 percent to 18,505 yuan a ton, tin declined 0.6 percent to 205,710 yuan a ton while nickel rose 0.3 percent to 179,710 yuan a ton, zinc was up 0.2 percent to 21,115 yuan a ton and lead edged up 0.1 percent at 15,295 yuan a ton.
