Industrial metals fell on Thursday, as surging inflation in the United States fuelled expectations of aggressive monetary policy tightening, which could slow global economic growth and demand for metals.
The most-traded August copper contract on the Shanghai Futures Exchange slipped 0.2 percent to 56,040 yuan ($8,331.72) a ton at 0138 GMT, nickel declined 3.7 percent to 155,120 yuan a ton and zinc dropped 4.2 percent to 22,145 yuan a ton.
Three-month zinc on the London Metal Exchange was down 1 percent at $2,921 a ton, lead shed 1.3 percent to $1,929 a ton. Copper was flat at $7,325.50 a ton, hovering near a 20-month low hit in the previous session.
US annual consumer prices jumped 9.1 percent in June, the largest increase since 1981, leaving the Federal Reserve most certain to hike interest rates by another 75 basis points at the end of the month.
Elsewhere, the European Commission reportedly predicted record levels of inflation and slashed its economic growth forecast for 2022 and 2023.
Improving economic data from top metals consumer China supported prices, with exports rising at the fastest pace in five months after the lifting of COVID-19 lockdowns. — Reuters
