On Tuesday, fears of a coming global financial crisis and the dollar’s slight recovery from a five-week low caused copper prices in London to fall.
After UBS’ state-backed takeover of Credit Suisse allayed some fears of a widespread, systemic banking crisis, the dollar gained some ground on Tuesday but remained close to a five-week low as traders retreated into riskier assets.
By 0247 GMT, the price of three-month copper on the London Metal Exchange had decreased by 0.4 percent to $8,662.50 per tonne, while the price of the most-traded May copper contract on the Shanghai Futures Exchange had increased by 0.5 percent to $9,788.53 per tonne, following the overnight gain in London.
The LME cash copper contract was trading at a premium of $3.75 a tonne over the three-month contract, flipping from a discount zone that has existed since January 19, indicating tightening nearby supply. Copper prices rise in a volatile market.
Since March 13, the front-month SHFE copper contract has traded at a premium to the three-month contract, indicating a tightening of nearby supply as China’s demand for the metal increased.
Tin rose 0.3 percent to $22,810 a tonne, lead decreased 0.4 percent to $2,110 a tonne, and LME aluminum rose 0.2 percent to $2,278 a tonne.
Nickel decreased 2.6% to 173,310 yuan per tonne, zinc decreased 0.3 percent to 22,505 yuan per tonne, lead decreased 0.2 percent to 15,350 yuan per tonne, and tin decreased 0.2 percent to 184,560 yuan per tonne for SHFE aluminum.