Dec 20 (Reuters) – Copper prices fell on Monday as rapidly spreading Omicron coronavirus cases weighed on sentiment, but low inventories of the industrial metal cushioned the decline.
Three-month copper on the London Metal Exchange CMCU3 eased 0.1% to $9,426.5 a tonne, as of 0240 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange SCFcv1 fell 0.5% to 68,960 yuan ($10,813.18) a tonne.
The Netherlands went into lockdown on Sunday while several other European governments considered additional curbs to control the spread of the highly contagious Omicron variant.
Copper prices, however, were supported by signs of lower inventories, with on-warrant LME-registered stocks MCUSTX-TOTAL easing to 80,550 tonnes. Meanwhile, the premium for LME cash copper over the three-month contract MCU0-3 was at $30 a tonne, highest in two weeks.
Inventories in Shanghai Futures Exchange warehouses fell to 34,580 tonnes last week, lowest since June 2009.
FUNDAMENTALS
* LME aluminium CMAL3 fell 0.3% to $2,716 a tonne, nickel CMNI3 eased 0.1% to $19,625 a tonne, lead CMPB3 was down 0.7% at $2,291 a tonne and tin CMSN3 dipped 0.4% to $38,275 a tonne.
* ShFE aluminium SAFcv1 gained 1% to 19,675 yuan a tonne, nickel SNIcv1 rose 0.6% to 145,430 yuan a tonne, lead SPBcv1 fell 1.6% to 15,405 yuan a tonne and tin SSNcv1 was 0.8% lower at 282,520 yuan a tonne.
* China’s aluminium imports have hit an annual record high this year with a month to spare, customs data showed on Saturday, as restrictions on power usage by domestic smelters underpin demand for overseas metal.
* China’s output of alumina, which is smelted to make aluminium, fell in November by 4.5% year-on-year to its lowest in 18 months, official data showed on Friday, as regions impose curbs on the aluminium raw material, while production of both lead and zinc was the highest since December last year.
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* Asian share markets fell and oil prices slid on Monday as surging Omicron cases triggered tighter restrictions in Europe and threatened to drag on the global economy into the new year. MKTS/GLOB
* The U.S. dollar hovered near the highest since July of last year against major peers on Monday after a Federal Reserve official signalled a first pandemic-era interest rate hike could come as early as March. USD/
($1 = 6.3774 Chinese yuan)
(Reporting by Eileen Soreng in Bengaluru; Editing by Vinay Dwivedi)
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