Copper prices in London extended losses for a third straight session on Tuesday, hit by a strong dollar and demand worries amid COVID-19 curbs in top consumer China and higher benchmark interest rates globally.
Three-month copper on the London Metal Exchange fell 0.5 percent to $7,550 a ton, while the most-traded August copper contract on the Shanghai Futures Exchange declined 1.2 percent to 58,000 yuan ($8,616.85) a ton.
The dollar index hit its highest since October 2002, amid global growth fears, making greenback-priced metals more expensive to holders of other currencies.
China aims to build a total of 461,000 kilometers (286,452 miles) of national highway by 2035, compared with 382,000 kilometers by the end of 2021, as authorities are doubling down on an infrastructure push, which means more metal consumption.
New bank lending in China leapt in June amid efforts to revive the pandemic-hit economy and Beijing was reportedly considering allowing local governments to sell 1.5 trillion yuan ($220 billion) of special bonds in July-December to boost infrastructure funding.
“It’s only impacting the (metal price) curve, not flat price because it’s bringing forward next year’s spending and projects to this year. It’s not additional demand,” a trader said, referring to China’s infrastructure stimulus plan.
Market participants are also awaiting US inflation numbers and China’s macroeconomics data to better understand the global economic health and cues for possible government measures, the trader added.
LME zinc rose 0.7 percent to $3,063 a ton, ShFE nickel jumped 2.7 percent to 163,000 yuan a ton, ShFE tin leapt 4.5 percent to 196,330 yuan a ton and ShFE lead advanced 1.7 percent to 15,100 yuan a ton.
