INDUSTRIAL METALS DECLINE ON RISING CORONAVIRUS CASES IN CHINA
INDUSTRIAL METALS DECLINE ON RISING CORONAVIRUS CASES IN CHINA
20th of July ,2021

Jan 11 (Reuters) - Industrial metals fell on Monday on demand worries as top metal consumer China saw its biggest daily increase in COVID-19 cases in more than five months.

The most-traded February lead contract on the Shanghai Futures Exchange closed down 3.8% to 14,470 yuan ($2,233.13) a tonne.

The February zinc contract declined 2.8% to 21,020 yuan a tonne, while the March nickel contract was down 4% to 127,490 yuan a tonne. Both metals are used in steelmaking.

China's Hebei province, a hub for making steel and some lead-acid batteries, accounted for 82 of the 85 new local infections reported on Jan. 10, the National Health Commission said in a statement.

The total number of new COVID-19 cases stood at 103, the highest since 127 cases were reported on July 30.

"COVID-19 cases are rising in China which has certainly unnerved the markets," said broker Kingdom Futures' director Malcolm Freeman in a note.

A stronger U.S. dollar also pressured prices on the London Metal Exchange, as greenback-priced metals became more expensive to holders of other currencies.

Souring U.S.-China tension over Taiwan also dampened risk sentiment in China, where equities prices eased.

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