BEIJING: Prices of base metals fell on Thursday, as the U.S. dollar steadied and made it more expensive to buy the greenback-priced commodities, while lingering fears over demand from top consumer China also weighed on sentiment.
Three-month copper on the London Metal Exchange slid 0.4% to $9,222 per metric ton by 0204 GMT, while the most-traded October copper contract on the Shanghai Futures Exchange was down 1.6% at 73,880 yuan ($10,364.32) a ton.
The dollar steadied as it nursed some of its steep losses from previous sessions, with traders looking ahead to a key U.S. inflation reading at the end of the week that could offer further clues on the outlook for rates there.
Adding to the downward pressure were concerns about demand as China’s economy proved to be weakening amid a protracted property crisis.
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The world’s leading miner BHP downgraded its forecast for China’s copper growth to 1-2% this year, as housing completions, the major indicator for copper end-use in housing, is expected to contract sharply in 2024, the company said in a commodity outlook issued on Tuesday.
LME aluminium dropped 1.5% to $2,458.50 a ton, nickel shed 0.4% to $16,960, zinc moved down 0.5% to $2,866.50, lead decreased 0.8% to $2,067.50 and tin was down 1.6% at $32,100.
SHFE aluminium declined 1.5% to 19,675 yuan a ton, lead slipped 0.9% to 17,385 yuan, while nickel was 0.6% lower to 131,380 yuan, zinc trimmed 0.9% lower to 23,925 yuan and tin fell 2.3% to 261,640 yuan.
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