METALS-Copper slips on virus surge, weak dollar limits losses

(Updates prices, adds analyst comment)

April 21 (Reuters) – Copper fell on Wednesday following concerns that a resurgence of COVID-19 infections in some major economies, such as India and Japan, will slow global economic recovery and dampen metals demand, although a weak U.S. dollar limited losses.

Three-month on the London Metal Exchange CMCU3 was down 0.1% at $9,314.50 tonne by 0455 GMT, while the most-traded June copper contract on the Shanghai Futures Exchange SCFcv1 dropped 0.8% to 68,790 yuan ($10,584.87) a tonne.

“Copper gave up some of the recent gains amid the broader decline in risk appetite,” said ANZ senior commodity strategist Daniel Hynes. “Concern continues to mount over rising cases of COVID-19 in Asia.”

Copper touched $9,483 a tonne in the previous session, its highest since Feb. 25, supported by strong demand and tight supply.

Japan’s government is considering a state of emergency for Tokyo and Osaka as new COVID-19 case numbers surged, while India has been hit by another wave of infections that has overwhelmed hospitals in major cities. weak dollar , which hovered just above a seven-week low versus its major rivals, lent some support to base metals. A weaker dollar makes greenback-priced metals more attractive to holders of other currencies. LME aluminium CMAL3 rose 0.5% to $2,322 a tonne, zinc CMZN3 slipped 0.3% to $2,805 a tonne, while nickel CMNI3 gained 0.2% to $16,070 a tonne.

* ShFE aluminium SAFcv1 dropped 0.6% to 18,030 yuan a tonne, nickel SNIcv1 fell 0.6% to 120,380 yuan a tonne, while zinc SZNcv1 slumped 1.7% to 21,420 yuan a tonne.

* Peru’s presidential front-runner has proposed nationalising mining and redrafting the Andean country’s Constitution, raising risks to mining investment in the world’s no. 2 copper producer that could put upward pressure on prices of the red metal. For the top stories in metals and other news, click TOP/MTL or MET/L

($1 = 6.4989 Chinese yuan)



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