Copper prices fall amid concerns over Chinese demand and rising dollar

Copper prices fell on Tuesday, burdened by a firmer dollar and fears that an energy crisis and slower economic growth in China, the main consumer of metals, would erode demand.

At 0950 GMT, three-month copper on the London Metal Exchange (LME) was down 0.9% to $ 9,783 a tonne after rising 1.7% on Monday.

High energy prices and efforts to curb pollutant emissions in China have limited production of some metals, but analysts worry that manufacturers will also be affected, undermining consumption.

“There are many uncertainties, including the severity of the destruction of demand by the energy crisis both in China and in other parts of the world.”Said Wenyu Yao, senior commodities strategist at ING Bank.

“So in the short term, the market will remain very volatile until things clear up.“Added the expert.

The dollar index was trading higher, making raw materials more expensive for holders of other currencies.

Low inventories have supported copper prices, which hit a five-month high of $ 10,452.50 a week ago, but more material will be available soon, according to Antaike.

On-warrant copper stocks on the LME increased for the fifth consecutive session to 27,100 tonnes.