The most-traded December copper contract on the Shanghai Futures Exchange (SHFE) was up 0.3% at 65,780 yuan ($9,061.11) a tonne, as of 0755 GMT, while three-month copper on the London Metal Exchange (LME) edged up 0.2% at $7.931 a tonne.
London copper prices jumped 7.3% last week, their best weekly gain since March, while SHFE copper hit its highest since June 20 on Monday, amid hopes that China would ease its strict COVID-19 curbs, which could boost metals demand.
The price increase was exacerbated by low inventories in global warehouses, especially in China, where stockpiles in SHFE and bonded warehouses combined were at 84,164 tonnes, hovering near their record low of 72,159 tonnes hit in October.
Chinese authorities, however, reaffirmed its stance on stringent restrictions to control coronavirus outbreaks, causing metals prices to retreat.
“Over the weekend, the expectations that the anti-epidemic policy would be liberalized fell short, and the price fell in a limited way to repair the overly optimistic expectations,” said Jinrui Futures in a report.
“The fluctuation level of copper prices has risen significantly recently. Short-term orders are recommended to be purchased as needed, and long-term strategic inventory reserves are not recommended for the time being,” it added.
Poor economic data from China on Monday also dented risk sentiment and appetite for metals, while a firmer dollar made greenback-priced metals more expensive to holders of other currencies.
LME aluminium edged down 0.1% to $2,334 a tonne, lead dropped 1.1% to $2,014 a tonne, zinc declined 0.6% to $2,869 a tonne, while tin rose 1.7% to $19,255 a tonne.
SHFE tin climbed 1.4% to 167,700 yuan a tonne, nickel fell 0.4% to 192,190 yuan a tonne, aluminium rose 0.6% to 18,450 yuan a tonne and zinc edged up 0.2% to 23,715 yuan a tonne.
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