METALS-Copper slides on dollar gains, recession worries
COVID: China will halve to seven days its COVID-19 quarantine period for overseas visitors, with a further three days spent at home. The country's state planner said it would roll out tools in its policy reserve in a timely way to cope with economic challenges, boosting sentiment. Clues to Chinese demand for industrial metals will come later this week from surveys of purchasing managers in the manufacturing sector.
DOLLAR: A higher U.S. currency makes dollar-priced metals
more expensive for holders of other currencies, which tends to
subdue demand. This relationship is used by funds to generate
buy and sell signals from numerical models. GROWTH: Rising inflation and interest rate hikes have
fuelled worries about a global economic recession. SPREADS: Worries about low zinc stocks in LME-registered
warehouses have eased. This can be seen in the narrowing premium
for the cash over the three-month zinc contract , last
at $57 a tonne compared with more than $200 a tonne last week.
But zinc availability on the LME market remains a problem as
cancelled warrants — material earmarked for delivery — at 77% of
the total indicates more metal is due to leave LME warehouses
over coming weeks .
Three-month zinc rose 0.8% to $3,345 a tonne.
OTHER METALS: Aluminium slipped 0.1% to $2,493, lead was down 1.5% at $1,973, tin climbed 2.8% to
$26,230 and nickel gained 1.3% to $23,180 a tonne.
(Reporting by Pratima Desai; additional reporting by Brijesh Patel in Bengaluru; editing by Vinay Dwivedi)
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