CPER - Base metals miners poised for further losses on recession COVID concerns
Prices for copper and other industrial metals fell on Monday on continuing worries about a potential global recession as well as demand in China due to new coronavirus restrictions.
According to Reuters, benchmark copper ( HG1:COM ) on the London Metal Exchange recently traded -2% at $7,648/metric ton; aluminum, zinc and nickel also were lower, while lead and tin posted modest gains.
In China, the most-traded iron ore ( SCO:COM ) on the Dalian Commodity Exchange ended daytime trading -3.3% at 741 yuan/metric ton ($110.37), while the front-month contract on the Singapore exchange was -4.6% at $107.45/ton.
Among the major global names trending lower in the pre-market: ( NYSE: FCX ) -2.1 %, ( SCCO ) -1.6% , ( RIO ) -2.4% , ( BHP ) -3.2% , ( VALE ) -3.4% , ( AA ) -2.2% , ( MT ) -2.8% , ( X ) -2.3% , ( CLF ) -2% , ( NUE ) -1.8% .
ETFs: ( COPX ), ( CPER ), ( JJC ), ( JJCTF )
Several cities in China are adopting fresh COVID-19 restrictions from business halts to lockdowns, with Shanghai bracing for another mass testing.
The dollar remains near 20-year highs relative to other currencies, making dollar-priced industrial metals more expensive for consumers and weighing on demand.
Also, copper stockpiles are rising in warehouses monitored by the Shanghai Futures Exchange and LME-approved warehouses.
Spooked by recession fears, copper prices plunged more than 20% in Q2, the metal's biggest quarterly decline since 2011 .
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Base metals, miners poised for further losses on recession, COVID concerns