METALS-Base metals fall on worries over higher interest rates in US

Kitco Media
By Reuters
Published:
Updated:
Reuters
April 24 (Reuters) - Base metals prices fell on Monday over concerns that rising interest rates in the United States could eventually lead to lesser demand for metals.


The three-month copper on the London Metal Exchange fell 0.1% to $8,790.50 a tonne by 0356 GMT, while the most-traded May copper contract on the Shanghai Futures Exchange declined 0.5% to 68,590 yuan ($9,936.69) a tonne. Strong business activities in the U.S. and the Euro zone reinforced bets of the Federal Reserve raising interest rates, as markets cautiously entered a week packed with economic data and central bank meetings. Higher interest rates could lead to a stronger dollar, which makes greenback-priced metals more expensive to holders of other currencies. Meanwhile, an uneven economic recovery in China also weighed on demand for metals in the world's biggest metals consumer. Yangshan copper premium fell to $23 a tonne, its lowest since March 10. LME aluminium shed 0.3% to $2,389.50 a tonne, nickel dropped 1.5% to $24,110 a tonne, zinc declined 0.6% to $2,703.50 a tonne, lead decreased 0.7% to $2,145 a tonne and tin lost 0.9% to $26,355 a tonne. SHFE nickel tumbled 3.4% to 181,600 yuan a tonne, aluminium declined 0.8% to 18,850 yuan a tonne, zinc dropped 1.7% to 21,615 yuan a tonne, tin decreased 1.7% to 211,820 yuan a tonne and lead fell 0.3% to 15,295 yuan a tonne. For the top stories in metals and other news, click or DATA/EVENTS (GMT) 0800 Germany Ifo Business Climate New 0800 Germany Ifo Curr Conditions New 0800 Germany Ifo Expectations New
($1 = 6.9027 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Sohini Goswami)

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