HANOI — Copper prices fell on Friday and were on track for a weekly decline as investors worried about possible measures by Chinese authorities to curb a rally in commodity prices.
Three-month copper on the London Metal Exchange fell 0.2% to $9,871 a tonne by 0301 GMT. The contract was down 0.8% on a weekly basis.
The most-traded July copper contract on the Shanghai Futures Exchange declined 0.8% to 70,920 yuan ($11,106.76) a tonne and was also set for a weekly decline.
China’s state reserves administration plans to sell its reserves of copper, aluminum and zinc in a program expected to last until the end of 2021, Chinese information provider Shanghai Metal Exchange Market said.
China is the world’s biggest copper consumer.
The possible action by the administration came as domestic producer inflation in May hit its highest in more than 12 years due to surging commodity prices, while copper prices hit a record high last month.
* LME aluminum rose 0.4% to $2,486.50 a tonne and lead advanced 0.6% to $2,188 a tonne. ShFE aluminum climbed 1.9% to 18,855 yuan a tonne and ShFE nickel increased 2% to 134,800 yuan a tonne.
* China is looking to release 800,000-900,000 tonnes of primary aluminum from its state reserves as soon as next month to ease high prices for the metal, consultancy CRU said in a note to clients, citing local market contacts.
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* U.S. bond yields fell to three-month lows and a broad gauge of Asian shares rose as investors saw enough one-off factors in U.S. consumer price data to back the Federal Reserve’s conviction that rising inflation will be transitory.
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($1 = 6.3853 yuan) (Reporting by Mai Nguyen; editing by Uttaresh.V)