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Base metals slump on COVID-19 concerns in China

The prospect of strike action in Chile and power problems reportedly impacting copper mines in Zambia weren’t enough to support the red metal price yesterday.
Base metals slump on COVID-19 concerns in China Base metals slump on COVID-19 concerns in China Base metals slump on COVID-19 concerns in China Base metals slump on COVID-19 concerns in China Base metals slump on COVID-19 concerns in China

The Oyu Tolgoi copper-gold JV in Mongolia

Staff reporter

China's copper imports declined for the fourth month in a row, Marex's Dee Perera said from the LME desk, and she noted sell-side analysts had downgraded full-year growth forecasts for China due to the COVID-19 resurgence.

Copper closed down more than 1% on the London Metal Exchange.

It was a glum day for base metals with nickel losing more than 3%.

Iron ore continued to weaken, with MySteel 62% Australian fines down 2.8% to US$173 per tonne.

Gold was briefly worth more than $1,750 an ounce on the spot market, after yesterday's slump following better-than-expected US jobs data on Friday. 

It was about $1,731/oz at the time of writing.

Finally, Rio Tinto managed a gain of almost 1% in London despite a report yesterday accusing it of mismanagement causing the cost blowout at the Oyu Tolgoi copper-gold mine in Mongolia.

Turquoise Hill Resources (TSX: TRQ), which owns 66% of Oyu Tolgoi and is majority owned by Rio, closed down 3.7% in Toronto.