Covid-19 concerns about near-term demand in China have been alleviated by infections that have resulted in prolonged lockdowns, a move that has dampened enthusiasm in the global economy.
Base metals have been pushed lower by Chinese lockdowns and concerns about rapid US interest rate hikes, with copper reaching its lowest level in more than five months this week.
According to experts, China’s April vehicle sales fell nearly 48 percent year-on-year, as the lockdown in China’s megacities affected factories and showrooms.
As a result, China’s April copper cathode output fell on both a monthly and annual basis, according to a state-backed research firm, and the country’s factory-gate inflation fell to a one-year low, giving officials more leeway to increase support.
The supply shock caused by the lockdown spurred aluminum prices to increase by 0.5 percent to $2,769 per tonne.
On the other end, zinc prices increased by 1.3 percent to $3,645, while lead and tin prices remained unchanged at £2,112 and $35,530, respectively.