Jan 10 (Reuters) - Prices of most base metals fell on Tuesday as traders gauged the risks of a global economic downtrend and weak consumption, shedding gains logged in the previous session after top consumer China reopened its borders.
Three-month copper on the London Metal Exchange was down 0.9% at $8,785 a tonne, as of 0741 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange closed up 1.5% at 66,590 yuan ($9,813.57) a tonne, tracking overnight gains in London.
LME aluminium dipped 0.7% to $2,421 a tonne, zinc declined 1.4% to $3,161.50 a tonne, lead fell 1% to $2,228.50 a tonne and tin shed 1% to $25,600 a tonne.
SHFE lead declined 0.2% to 15,530 yuan a tonne, tin was down 1% at 203,480 yuan a tonne, while aluminium rose 1.4% to $18,160 a tonne and zinc climbed 1.8% to 23,735 yuan a tonne.
Base metals prices rose strongly on Monday, driven higher by an improving demand outlook after top consumer China reopened its border after years of restrictions due to the COVID-19 pandemic, boosting LME copper to its highest in more than six months.
But fundamentally, the global economy is still at risk of a recession and the U.S. dollar could still firm up even more amid prospects of further interest rate hikes, making greenback-priced metals more expensive to holders of other currencies.
"(Prices) went too high last night. I am neutral to bearish short term. I don't see strong prices till at least Q3," said a broker.
Physical demand of metals is also expected to slow as China is about to enter its week-long holiday break to celebrate the Lunar New Year during Jan. 23-27.
Yangshan copper premium
SHFE nickel hit a one-month low of 204,180 yuan a tonne on rising supply worries after Bloomberg reported that nickel producer Tsingshan is looking to boost refined nickel output in China from intermediate forms like ferronickel.
For the top stories in metals and other news, click or
($1 = 6.7855 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Sherry Jacob-Phillips and Nivedita Bhattacharjee)
