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Copper price falls on recession fears, China covid-19 curbs

Shanghai construction. Credit: Wikimedia Commons.

Copper prices fell on Tuesday, on worries that China’s determination to stick with its strict covid-19 rules could dampen economic growth and demand for metals.

Copper for delivery in December fell 1.8% on the Comex market in New York, touching $3.35 per pound ($7,379 per tonne).

[Click here for an interactive chart of copper prices]

The most-traded November copper contract on the Shanghai Futures Exchange (ShFE) declined 0.9% to 62,650 yuan ($8,702.60) per tonne.

Chinese President Xi Jinping reiterated the validity of China’s zero-covid policy, which includes lockdowns and movement curbs to prevent the spread of coronavirus, at the Communist Party Congress on Sunday.

A sharp increase in ShFE copper inventories on October 14 also dented sentiment. But tight supply, overall, of the metal in China continued to lend some support and cushion prices from steep falls.

Visible copper stocks in China, which includes inventories in Chinese bonded and ShFE warehouses, were 93,846 tonnes on October 14, edging up from a record low, but still, at low levels.

(With files from Reuters)