Oct 12 (Reuters) – Copper prices fell on Tuesday as rising electricity prices raised concerns that downstream consumers would reduce production, resulting in lower demand for the metal.
Three-month copper on the London Metal Exchange CMCU3 fell 1.5% to $9,404 a tonne by 0309 GMT, while the most-traded November copper contract on the Shanghai Futures Exchange SCFcv1 rose 0.5% to 69,870 yuan ($10,829.37) a tonne, tracking overnight gains in London.
LME aluminium CMAL3 declined 1.1% to $3,029 a tonne, zinc CMZN3 was down 0.6% at $3,210 a tonne and tin CMSN3 decreased 1.6% to $35,800 a tonne.
ShFE aluminium SAFcv1 rose 1.4% to 23,345 yuan a tonne, zinc SZNcv1 advanced 1.9% to 23,640 yuan a tonne, while tin SSNcv1 dropped 2.2% to 276,970 yuan a tonne.
Power prices have risen to records in recent weeks, driven by energy shortages in Asia, Europe and the United States, as the pace of economic recovery from the pandemic has supercharged energy demand.
China’s central bank withdrawing liquidity from the market also curbed risk sentiment, and property giant China Evergrande 3333.HK potentially missing another debt payment also hindered market confidence in the Chinese real estate sector, which consumes a large amount of metals.
However, cushioning further falls in metals prices are worries of a disruption in metals production due to the same energy crisis as well as rising interest in owning metals as a hedge against inflation.
* Chile’s state miner Codelco will produce 2% to 3% more copper this year than it had previously expected, its chairman said.
* China’s major copper smelters in September kept output flat month-on-month due to maintenance and power curbs, Antaike said on Monday.
* For the top stories in metals and other news, click
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* Asian shares dropped and the safe-haven dollar held firm, as a global energy crunch fuelled inflation fears, clouding investor sentiment before the U.S. corporate earnings season. MKTS/GLOB DATA/EVENTS (GMT)
0600 UK Claimant Count Unem Chng Sept
0600 UK ILO Unemployment Rate Aug
0900 Germany Zew Economic Sentiment Oct
0900 Germany Zew Current Conditions Oct
($1 = 6.4519 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Amy Caren Daniel)
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