(LME) copper futures on the London Metal Exchange closed lower on Thursday after the Federal Reserve minutes of its December meeting showed that interest rates may rise faster than expected, hitting risk appetite.
17:00 London time (01:00 Beijing time on January 7th)), LME three-month copper closed down $167, or 1.72%, to settle at $9531 a tonne.
Fed policy makers said at last month's meeting that a "very tight" job market and rising inflation could accelerate the process of tightening monetary policy.
"if central banks tighten policy, it does not bode well for commodities, and liquidity is the lifeblood of riskier assets," said independent analyst Robin Bhar.
He added that despite macroeconomic pressures, metals such as copper were still supported by low inventories and the prospect of rising demand from the green revolution.
The strength of the dollar has reduced demand for dollar-denominated assets. Fed minutes dragged down stocks and some bond yields climbed.
High electricity prices in Europe have supported power-intensive metals such as aluminium and zinc, some of which have been halted.
Data released on Thursday showed that aluminum registered warehouse receipts at LME registered warehouses stood at 550700 tonnes, the lowest level since December 2005, with a reduction of about 160000 tonnes in the past two trading days.
Aluminum was basically flat during the period of low inventory and high electricity price support, with a settlement price of US $2921.50 per tonne, with all base metals falling except lead.
China's Yangshan copper premium fell to $78 a tonne, the lowest since August, a good indicator of China's import demand.
