London copper and aluminum prices
rebounded on Tuesday, helped by a slight pullback in the US
dollar, although a spike in COVID-19 cases in Beijing and global
slowdown worries weighed on investor sentiment.
Three-month copper on the London Metal Exchange rose
0.8% to $9,365.50 a tonne, as of 0705 GMT, while aluminum
was up 0.3% at $2,635, after hitting its lowest since
Dec. 15 on Monday.
The most-traded July aluminum contract in Shanghai
ended daytime trading 1% lower at 20,005 yuan ($2,976.93) a
tonne, after falling to its lowest since May 11 earlier in the
Offering some respite, the dollar rally stalled as
the US currency fell 0.2% against its rivals, making
greenback-denominated metals less expensive for buyers using
“Concerns of weaker economic growth as central banks hike
commodity rates weighed on sentiment in the base metals market,” commodity rates
strategists at ANZ said in a note.
“Following the easing of some restrictions in recent weeks,
the market was reminded of the rollercoaster ride it is on when
authorities in Shanghai sealed a district for mass testing.
These little outbreaks of COVID-19 could hinder the economic
recovery and weigh on demand.”
Beijing’s authorities have launched an investigation into a
24-hour bar that they believe to be at the center of a cluster
of more than 250 COVID-19 cases in China’s capital since last
week, local media reported on Tuesday.
Rising expectations that the US Federal Reserve will this
week raise interest rates by more than previously forecast
* Lead surpluses in top consumer China will cancel out
shortages of the battery material in Europe and the United
States, effectively leaving the global market in balance this
* Ghana is on a roadshow to find a strategic partner to
rebuild state-owned Volta Aluminium Co’s aluminum smelter.
OTHER METALS: LME zinc rose 0.9% to $3,646.50 a
tonne, lead edged 0.1% higher to $2,100, nickel
eased 0.3% to $25,855, and tin fell 0.8% to $32,645.
Shanghai copper was down 0.5%, zinc rose
0.3%, nickel was down 2.9%, lead edged 0.2%
lower, and tin dropped 4.3%.
($1 = 6.7345 Chinese yuan)
(Reporting by Brijesh Patel in Bengaluru; Editing by Sherry
Jacob-Phillips, Shounak Dasgupta and Subhranshu Sahu)