Shanghai tin prices dropped on Tuesday from record highs hit in the previous session as growing power cuts in top consumer China sparked worries over downstream demand.
The most-traded November tin contract on the Shanghai Futures Exchange fell 4.5% to 269,430 yuan ($41,667.38) a tonne at 0416 GMT, falling from a record 290,510 yuan-a-tonne record level hit on Monday.
As solder companies and tin chemical producers in parts of China operated at reduced capacity due to electricity usage curbs, demand for refined tin reduced, the International Tin Association’s (ITA) Beijing branch said on Monday.
“The price of tin, previously supported by fundamentals, may face greater downward pressure,” the ITA added.
Prices of the metal surged 91.5% this year as of Monday’s close, backed by pandemic-led supply disruptions in major producing countries and booming demand for electronics.
ShFE nickel dropped 3.2% to 140,900 yuan a tonne, while LME nickel fell 1.4% to $18,690 a tonne.
“The current demand for nickel… is strong, but the limited production of stainless steel affects some refined nickel consumption,” brokerage Huatai Futures said in a report.
“The power curtailment policy affects part of the downstream consumption of nickel.”
* LME copper edged up 0.1% to $9,373.50 a tonne and zinc rose 0.2% to $3,073 a tonne.
* ShFE aluminum declined 1.4% to 22,630 yuan a tonne, zinc was down 1.4% to 22,705 yuan a tonne and copper eased 0.1% to 69,240 yuan a tonne.
* Australia-based miner MMG Ltd said on Monday it would stop operations at its copper mine at Las Bambas in Peru this week, as community protests in a nearby province has upended transport.
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($1 = 6.4662 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Ramakrishnan M.)