Copper skids on fears about Delta variant hitting demand

Copper prices declined for a third session on Tuesday

  
Image used for illustrative purpose. Copper wire scraps are seen during construction of the R240 electric engine of French carmaker Renault at its factory in Cleon, France, June 18, 2015.

Image used for illustrative purpose. Copper wire scraps are seen during construction of the R240 electric engine of French carmaker Renault at its factory in Cleon, France, June 18, 2015.

REUTERS/Philippe Wojazer

LONDON- Copper prices declined for a third session on Tuesday on worries that the rapid spread of powerful COVID-19 variants would spur further lockdowns and curb demand for industrial metals.

Three-month copper on the London Metal Exchange slipped 1% to $9,608.50 a tonne in official trading.

LME copper has eased from a record peak of $10,747.50 touched in May, but is still up 24% so far this year.

Investors were concerned over a combination of renewed lockdowns due to the 

"What was noticeable was a slowing of growth in both the U.S. and China and those two are the big powerhouses of the global economy," said independent consultant Robin Bhar.

Top metals consumer China reported higher locally transmitted COVID-19 cases for Monday, and its central city of Wuhan, where the virus first surfaced in 2019, announced mass testing of all residents.

"We've seen the peak in prices on the back of slowing growth, particularly with the Delta variant spreading widely and quickly. But there's no real conviction, no real volumes behind it, so it's difficult to read too much into the noise at the moment," Bhar added.

The wider uptrends in copper and most base metals prices were still intact, he added.

In China, the most-traded September copper contract on the Shanghai Futures Exchange SCFcv1 fell 1.6% to 70,450 yuan ($10,896.13) a tonne.

* Peruvian residents who have been blocking a road used by the Chinese-owned Las Bambas copper mine for the past week suspended their action on Monday. 

* The Yangshan copper premium rose to its highest since April 7 of $52 a tonne, indicating rising demand for importing the metal into China.

* LME aluminium fell 0.9% to $2,592.50 a tonne, nickel dropped 1.6% to $19,210, zinc shed 2.4% to $2,977, lead eased 0.4% to $2,393.50 and tin gave up 0.9% to $34,510.

 ($1 = 6.4656 yuan)

(Additional reporting by Mai Nguyen in Hanoi; Editing by Bernadette Baum) ((eric.onstad@thomsonreuters.com; +44 20 7542 7093; Twitter https://twitter.com/reutersEricO; Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net))


More From Commodities