HANOI, Jan 22 (Reuters) - Copper prices declined on Friday, hit by demand concerns over growing numbers of coronavirus cases in top user China ahead of the traditionally slow Lunar New Year holiday season next month.
Three-month copper on the London Metal Exchange fell 0.6% to $7,970 a tonne by 0706 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange closed down 0.6% to 58,810 yuan ($9,088.24) a tonne.
“Copper prices struggled to move higher, with investors concerned that the outbreak of the virus in China could see industrial activity constrained,” ANZ analysts said in a note.
“The outbreak comes ahead of the Chinese Lunar Year holiday, which normally sees industrial activity slow down.”
China’s economic recovery, one of the major factors that helped copper prices nearly double last year, is under threat as the world’s second-biggest economy battles its worst coronavirus outbreak since March 2020.
LME aluminium fell 0.6% to $1,985.50 a tonne and nickel dropped 1.7% to $18,075 a tonne. ShFE aluminium rose 0.1% to 14,905 yuan a tonne and zinc shed 2.5% to 19,995 yuan a tonne.
* China’s two biggest aluminium makers issued a joint proposal on how their industry should seek to reduce emissions, conserve energy and produce low-carbon metal, as part of a national plan to achieve carbon neutrality.
* Global copper smelting activity climbed in December, led by top producer China, while North America extended its decline as coronavirus cases surged, data from satellite surveillance of copper plants showed.
* Copper prices are likely to rise further after pushing above $8,000 a tonne this month, supported by China’s strong economy and government stimulus efforts after the COVID-19 pandemic, MMG Ltd chief executive Gao Xiaoyu said.
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