Prices of most base metals fell on Tuesday as traders gauged the risks of a global economic downtrend and weak consumption, shedding gains logged in the previous session after top consumer China reopened its borders.
Three-month copper on the London Metal Exchange was down 0.8% at $8,786 a tonne, as of 0422 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange rose 1.3% to 66,490 yuan ($9,823.01) a tonne, tracking overnight gains in London.
LME aluminum dipped 0.4% to $2,429 a tonne, zinc declined 1.2% to $3,168.50 a tonne, lead fell 1.3% to $2,222 a tonne and tin shed 1.4% to $25,500 a tonne.
SHFE lead declined 0.6% to 15,480 yuan a tonne, tin was down 0.6% at 204,200 yuan a tonne, while aluminum rose 1.5% to $18,175 a tonne and zinc climbed 1.9% to 23,760 yuan a tonne.
Base metals prices rose strongly on Monday, driven higher by an improving demand outlook after top consumer China reopened its border after years of restrictions due to the COVID-19 pandemic, boosting LME copper to its highest in more than six months.
But fundamentally, the global economy is still at risk of a recession and the U.S. dollar could still firm up even more amid prospects of further interest rate hikes, making greenback-priced metals more expensive to holders of other currencies.
Physical demand of metals is also expected to slow as China is about to enter its week-long holiday break to celebrate the Lunar New Year during Jan. 23-27.
Yangshan copper premium
SHFE nickel hit a one-month low of 204,680 yuan a tonne on rising supply worries after Bloomberg reported that nickel producer Tsingshan is looking to boost refined nickel output in China from intermediate forms like ferronickel.
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No major data/events expected on Tuesday, Jan 10
($1 = 6.7688 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Sherry Jacob-Phillips)