London copper prices fell on Monday as risk sentiment was dampened by the prospects of higher-for-longer interest rates in the United States, while buying slowed ahead of a long public holiday in top consumer China.
Three-month copper on the London Metal Exchange fell 0.3% to $8,198 per metric ton by 0209 GMT, while the most-traded November copper contract on the Shanghai Futures Exchange was almost flat at 67,790 yuan ($9,282.11) per metric ton.
Central banks for the world’s biggest economies, including the US Federal Reserve, have indicated they will keep interest rates as high as needed to tame inflation.
A high interest rate environment could temper economic growth and eventually dampen metals demand.
It could also mean a stronger US dollar, which makes greenback-priced metals more expensive to holders of other currencies.
Markets in China, which accounts for around half of copper consumption globally, will be shut for public holidays during Sept. 29-Oct. 6.
Copper stockpiles in LME-registered warehouses rose to the highest since May 2022 at 162,900 tons on Wednesday, latest data showed, putting further pressure on prices.
LME aluminium declined 0.6% to $2,227.50 a ton, nickel fell 0.3% to $19,370, zinc dropped 1.3% to $2,529.50, lead decreased 0.5% to $2,203.50, and tin rose 0.3% to $26,330.
SHFE aluminium fell 0.1% to 19,315 yuan a ton, zinc eased 0.1% to 21,605 yuan, while nickel rose 0.7% to 157,980 yuan, lead increased 0.4% to 16,870 yuan and tin climbed 2.4% to 222,700 yuan.