Copper prices fell on Thursday as the US dollar strengthened, making greenback-priced metals more expensive and less attractive to holders of other currencies.
Three-month copper on the London Metal Exchange fell 0.3 percent to $7,363 a ton, while the most-traded November copper contract on the Shanghai Futures Exchange declined 0.2 percent to 62,060 yuan ($8,564.02) a ton.
The dollar was firm as the US Treasury yields peaked at multi-year highs on expectations of aggressive rate hikes by the Federal Reserve.
In other economies, too, rising inflation sparked fears of further rate hikes and a looming global recession which could threaten metals demand.
The global copper market is expected to see a deficit of about 325,000 tons this year and a surplus of 155,000 tons in 2023, the International Copper Study Group said on Wednesday.
Chinese refined copper buyers may increase their purchase of Russian metal amid expected rising premiums for copper sales to China in 2023 – seen between $150 and $210 a ton over LME three-month price, and up from $105 in 2022 and $88 a ton in 2021.
LME zinc eased 0.1 percent to $2,897 a ton, lead edged down 0.1 percent at $1,983.50 a ton, while aluminum rose 1 percent to $2,192.50 a ton.
ShFE aluminum rose 0.8 percent to 18,425 yuan a ton, nickel increased 2.5 percent to 187,610 yuan a ton, zinc was up 1.5 percent to 25,080 yuan a ton, while tin dropped 1 percent to 167,890 yuan a ton. — Reuters
