(Updates prices)
Jan 30 (Reuters) - Copper prices fell on Monday, as weak
physical consumption prompted reassessment of how quickly and
strongly demand would rebound in top consumer China following
its COVID-19 restrictions removal last month.
The most-traded March copper contract on the Shanghai
Futures Exchange fell 1.2% to 69,330 yuan ($10,262.79)
a tonne by 0752 GMT as trading resumed after a week-long Lunar
New Year holiday, while three-month copper on the London Metal
Exchange dipped 0.8% to $9,184 a tonne.
Copper prices since mid-July 2022 have risen 28% in London
and 34% in Shanghai, underpinned by hopes of demand recovery in
China post dismantling of the "zero-COVID" policy.
However, physical copper demand remained tepid, as shown by
falling premiums . On Friday, LME copper posted its
first weekly fall since mid-December.
China's factory activity in January is expected to have
contracted more slowly than in December, a Reuters poll showed,
with production hampered as workers continued to fall sick after
the government relaxed rules.
"Copper prices have risen to a relatively high level, and
the reality may be difficult to make a positive response in the
short term," Jinrui Futures said in a note.
"It is expected that copper prices may face a certain risk
of a correction after the (New Year) festival."
However, a weaker dollar and supply threats in Peru where
MMG Ltd's Las Bambas mine would likely have to halt
production from Feb. 1 due to a shortage of "critical supplies",
provided some support to copper prices.
LME aluminium fell 1.1% to $2,599.50 a tonne and tin dropped 2.5% to $30,075 a tonne, and lead edged
up 0.1% to $2,185 a tonne.
SHFE nickel rose 2.7% to 219,960 yuan a tonne and
tin jumped 2.1% to 236,870 yuan a tonne, while
aluminium fell 0.6% to 19,000 yuan a tonne and zinc shed 1.7% to 24,175 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 ($1 = 6.7545 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu
and Rashmi Aich)
mai.nguyen.thomsonreuters.com@reuters.net))
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