Shanghai prices of industrial metals fell on Monday as top metal consumer China saw its biggest daily increase in COVID-19 cases in more than five months.
The most-traded February contract on the Shanghai Futures Exchange fell 3% to 14,585 yuan ($2,250.25) a tonne at 0151 GMT.
The February zinc contract declined 2.5% to 21,090 yuan a tonne, while the March nickel contract was down 2% to 130,210 yuan a tonne. Both metals are used in steelmaking.
China’s Hebei province, a major hub for making steel and lead-acid batteries, accounted for 82 of the 85 new local infections reported on Jan. 10, the National Health Commission (NHC) said in a statement.
The total number of new COVID-19 cases stood at 103, the highest since 127 cases were reported on July 30.
FUNDAMENTALS
* Three-month copper on the London Metal Exchange fell 1.1% to $8,044.50 a tonne, and ShFE copper declined 1% to 59,450 yuan a tonne. LME lead was down 1.1% to $1,980 a tonne.
* Zinc inventories in ShFE warehouseson Friday rose 22.5% from Dec. 31, 2020, to 35,008 tonnes, and lead stockpilesincreased 11.5% to 51,157 tonnes, exchange data showed.
MARKETS NEWS
* Asian shares took a breather while Treasury yields were at 10-month highs as “trillions” in new U.S. fiscal stimulus plans were set to be unveiled this week, stoking a global reflation trade.
Source: Reuters (Reporting by Mai Nguyen; Editing by Ramakrishnan M.)