(Updates prices by Asian market close)
March 19 (Reuters) - Copper slid to its lowest point in
three months on Thursday in a cross-complex selloff of base
metals, as oil prices spiked following Iranian attacks in the
Middle East, stoking inflation fears and stronger dollar amid
weakening rate-cut expectation.
The most-active copper contract on the Shanghai
Futures Exchange lost 4.50% to close at 94,430 yuan
($13,686.30) a metric ton, after declining as much as 5.09% to
93,850 yuan, the lowest since December 19and the biggest
percentage loss since February 2.
And the benchmark three-month copper on the London
Metal Exchange slid1.84% to $12,168 a ton, after dropping as
much as 2.92% to $12,034, the lowest since December 24.
"Copper came under more pronounced pressure, moving in
strong negative correlation with oil and the dollar," analysts
at Sucden Financial said, noting the broader base metal complex
is vulnerable as inflation fears due to rising energy prices and
dollar strength persists.
Brent futures surged above $110 a barrel, following
Iran's attack on several oil plants across Saudi Arabia, the
United Arab Emirates and Qatar in retaliation for strikes on its
own energy infrastructure in South Pars and Asaluyeh.
Rising oil prices fuel inflation concerns, bolstering
expectations of tighter monetary policy and weighing on
growth-linked metals such as copper.
Fed Chair Jerome Powell on Wednesday addressed rising energy
prices, saying it would "push up overall inflation" but noted
that "the scope and duration of the potential effects on the
economy" was too soon to know in his speech after the U.S.
central bank's widely-expected decision to keep interest rate
unchanged.
The U.S. dollar strengthened on Wednesday, Pressuring
commodities denominated by the greenback by making them less
affordable for investors using other currencies.
Copper also came under pressure from mounting stock levels.
Copper stocks in LME warehouses continued to rise
after hitting the highest since 2019, totalling 334,100 tons as
of Tuesday.
Elsewhere on SHFE, aluminium declined 2.64%, zinc
lost 3.16%, lead dropped 1.59%, nickel
tumbled 2.94% and tin slid 6.61%.
Among other LME metals, aluminium dropped 1.43%,
zinc lost 1.13%, lead slid 0.94%, nickel
tumbled 2.78% and tin plunged 3.69%.
($1 = 6.8996 Chinese yuan)