Base metals fall on fears of second virus wave in China – Financial Post



SINGAPORE — Prices of industrial metals declined on Monday due to worries about a second wave of the novel coronavirus in the country.

After weeks with almost no new COVID-19 infections, Beijing has recorded dozens of new cases and is taking steps to halt the outbreak linked to a major wholesale food market.

Three-month copper on the London Metal Exchange (LME) fell 1% to $5,725 a tonne by 0116 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange (ShFE) eased 0.6% to 46,410 yuan ($6,553.70) a tonne.

LME lead dropped 1.1% to $1,738 a tonne, aluminum hit its lowest in more than a week at $1,572 a tonne and ShFE lead fell 0.4% to 14,090 yuan a tonne.

FUNDAMENTALS

* COPPER: Copper trading on the CME and LME tumbled in May as funds and speculators reduced risk exposure, but volumes shot up in China as lockdowns were lifted.

* CHILEAN COPPER: Chilean copper miners’ unions called for a re-evaluation of the operational continuity plans of the country’s biggest miners during what they said was an “alarming” increase in coronavirus cases among workers.

* LEAD: ShFE lead inventories more than doubled over the past week on higher output and subdued Chinese demand.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Asian markets started the week on the backfoot and oil prices slipped as fears of a second wave of coronavirus infections in China sent investors scurrying for safe-havens.

DATA/EVENTS (GMT)

0200 China Urban Investment (YTD)
Source…