Recasts, updates prices, adds comments
BEIJING, April 4 (Reuters) – Prices of base metals were under pressure on Tuesday, as slowing economic outlook and renewed inflation fears sparked demand worries among investors, despite supply uncertainty.
Three-month copper on the London Metal Exchange CMCU3 dipped 0.1% to $8,909.50 a tonne by 0344 GMT.
Still, prices of the metal used in power, construction and new energy sectors have gained 4.8% from a two-month low in mid-March.
Analysts at Guotai Junan Futures said the current prices have subdued some spot buying, although demand from air conditioning sector has been strong.
Meanwhile, they noted the orders by the State Grid failed to meet expectations, new orders in the solar industry slid, and that for wire and cable contracted.
The most-traded May copper contract on the Shanghai Futures Exchange SCFcv1 eased 0.4% to 69,090 yuan ($10,040.11) a tonne.
Investor sentiment was also hampered by China’s factory activity, which lost momentum in March amid still-weak export orders.
That said, analysts from ANZ research noted Chile, the world’s largest copper producer, posted its lowest production in six years.
“State-owned firm Codelco warned its output woes of 2022 will only get worse this year as it strives to revive its aging operations following years of under-investment,” they added.
Among other metals, LME aluminium CMAL3 was down 0.2% at $2,393 a tonne, tin CMSN3 fell 2.1% to $25,500, zinc CMZN3 shed 0.6% to $2,882, nickel CMNI3 moved down 1% to $23,150, and lead CMPB3 nudged down 0.2% to $2,112.
Traders were also watching for any possible further production disruptions in the southwestern China’s Yunnan province, where local aluminium producers have been asked to cut power usage due to tight hydro-power supply.
SHFE aluminium SAFcv1 eased 0.2% to 18,665 yuan, zinc SZNcv1 declined 0.8% to 22,445 yuan, lead SPBcv1 dipped 0.1% to 15,200 yuan, tin SSNcv1 slid 0.7% to 204,010 yuan, and nickel SNIcv1 lost 0.6% to 177,250 yuan a tonne.
For the top stories in metals and other news, click TOP/MTL or MET/L
($1 = 6.8814 Chinese yuan)
(Reporting by Siyi Liu and Dominique Patton; Editing by Subhranshu Sahu and Uttaresh Venkateshwaran)
((Siyi.Liu@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
