Jan 30 (Reuters) - Copper prices fell on Monday as tepid
physical demand prompted traders to reassess how quickly and
strongly buying would pick up in top consumer China after the
country dismantled its zero-COVID policy last month.
The most-traded March copper contract on the Shanghai
Futures Exchange fell 0.6% to 69,750 yuan ($10,325.38)
a tonne by 0428 GMT as trading resumed after a week-long Lunar
New Year holiday, while three-month copper on the London Metal
Exchange was almost unchanged at $9,263 a tonne.
Copper prices have risen 11% so far this year in London and
5.5% in Shanghai, underpinned by hopes that consumption of the
metal in China would rebound following the removal of COVID-19
restrictions.
However, physical demand remained tepid prior to the Lunar
New Year holiday, which ended on Jan. 27, as shown by falling
premiums . On Friday, LME copper registered its
first weekly fall since mid-December 2022.
Meanwhile, a weaker dollar and supply threats in Peru, the
world's second biggest supplier of mined copper, provided some
support to copper prices on Monday.
Chinese copper miner MMG Ltd said its Las Bambas
mine in Peru would likely have to halt production from Feb. 1
due to a shortage of "critical supplies" leading to a slowdown
of operations.
LME aluminium fell 0.5% to $2,614.50 a tonne and tin dropped 2.7% to $30,000 a tonne, while lead rose
0.1% to $2,184.50 a tonne.
SHFE nickel rose 2.9% to 220,380 yuan a tonne and
tin jumped 2.7% to 238,280 yuan a tonne, while
aluminium fell 1% to 18,930 yuan a tonne and zinc shed 1.9% to 24,135 yuan a tonne.
LME cash zinc was at a $25.25 per-tonne premium over the
three-month contract , the highest in more than three
weeks, as inventories fell to 17,675 tonnes, the lowest since at
least 1998, based on Refinitiv Eikon data. For the top stories in metals and other news, click or DATA/EVENTS (GMT)
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($1 = 6.7552 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu)
mai.nguyen.thomsonreuters.com@reuters.net))
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