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.
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.