Copper prices fell on Tuesday in London as the dollar bounced back slightly from a five-week low hit in the previous session and amid fears of a looming global financial crisis.
The dollar regained some ground on Tuesday but was pinned near a five-week low as traders tiptoed back into riskier assets after UBS’ state-backed takeover of Credit Suisse allayed some fears of a widespread, systemic banking crisis.
Three-month copper on the London Metal Exchange fell 0.4 percent to $8,662.50 a ton, while the most-traded May copper contract on the Shanghai Futures Exchange rose 0.5 percent to 67,350 yuan ($9,788.53) a ton, tracking overnight gain in London.
The LME cash copper contract was trading at a premium of $3.75 a ton over the three-month contract, flipping from a discount zone that has lasted since Jan. 19, indicating tightening nearby supply.
The front month SHFE copper contract has been trading at a premium over the three-month contract since March 13, also indicating tightening nearby supply, as demand of the metal in China improved.
LME aluminum rose 0.2 percent to $2,278 a ton, lead fell 0.4 percent to $2,110 a ton while tin rose 0.3 percent to $22,810 a ton.
SHFE aluminum edged down 0.1 percent at 18,145 yuan a ton, nickel dropped 2.6 percent to 173,310 yuan a ton, zinc fell 0.3 percent to 22,505 yuan a ton, lead declined 0.2 percent to 15,350 yuan a ton and tin shed 0.2 percent to 184,560 yuan a ton. — Reuters
