HANOI, June 10 (Reuters) - Copper fell on Thursday, hit by
fresh concerns about price controls after surging producer
inflation strengthened China's resolve to keep commodity prices
Three-month copper on the London Metal Exchange fell
0.6% to $9,920 a tonne by 0706 GMT, while the most-traded July
copper contract on the Shanghai Futures Exchange dipped
0.5% to 71,290 yuan ($11,167.15) a tonne.
China's state planner on Wednesday renewed its pledge to
step up monitoring of commodity prices and strengthen
supervision of spot and futures markets, as domestic producer
inflation hit its highest in more than 12 years.
Copper prices have surged 28% so far this year on the LME
and 21% on ShFE. Last month, both contracts hit record highs.
"Such a rise in raw material prices has fueled concerns that
officials will crack down on speculation. China's economic
policy agency vowed to strengthen its control over commodity
markets," said ANZ in a note.
China is the world's biggest consumer of metals.
The market is also awaiting U.S. inflation data, due later
on Thursday, for clues on the Federal Reserve's position on
tapering monetary stimulus, a move that could dampen demand for
* LME aluminium fell 0.5% to $2,447.50 a tonne,
while nickel declined 1% to $17,955 a tonne. In
Shanghai, aluminium rose 0.4% to 18,440 yuan a tonne,
nickel shed 0.6% to 131,110 yuan a tonne, while lead
rose 1% to 15,420 yuan a tonne.
* Malaysia Smelting Corporation Bhd, the world's
third-biggest refined tin maker, said on Wednesday it had
declared force majeure on its deliveries to customers because of
coronavirus-related disruptions to production.
* The premium of LME cash aluminium and the three-month
contract <CMAL0-3> rose to $11.80 a tonne, its biggest since
December 2019, indicating tightening supply of nearby contracts.
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($1 = 6.3839 yuan)
(Reporting by Mai Nguyen; Editing by Ramakrishnan M. and Devika
Syamnath and Elaine Hardcastle)