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Copper price falls more than 2% on the London Metal Exchange

The copper prices They fell on Wednesday morning as higher inflation pushed investors into risk aversion sentiment, offsetting the impact of possible supply disruptions from South America.

Three-month copper in the London Metal Exchange (LME) lost 2.6% to $ 10,136 a ton.

The metal, widely used in the energy and construction industries, was heading for its biggest daily decline since February. Last week, copper reached $ 10,747.50 a ton and is up 32% so far this year.

“There has already been a lot of good news in the price of copper,” said Carsten Menke of Julius Baer on the moderate impact on prices of the potential for higher royalties and strikes in Chile and the advantage in voting intention of the socialist candidate for the presidential elections in Peru.

The analyst commented that supply and demand dynamics for the metal were positive relative to other metals, making copper less vulnerable to a broad price correction from all-time highs.

Global stocks were trading lower and the dollar was firming up in the face of a threat of unwanted inflation that was driving investors away from assets considered vulnerable to any removal of monetary stimulus.

Citi expects copper prices to trade above $ 12,000 a ton in 3-4 months, amid a “super cycle” driven by the bank’s expectation of strong production margins over the next five years.

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