Copper declines 3% as Ukrainian crisis develops

Copper prices fell on Monday as the dollar index rose against major rivals, while the Ukrainian crisis worsens. 

The Russian army announced an armistice in Mariupol, allowing humanitarian aid to get inside, for citizens to escape.

Russia has previously said it completely controlled Mariupol except a single factory that Ukrainian fighters are using as a base.

If the armistice is extended, markets hope that supplies of industrial metals would improve once more, and the pressure reduces on prices. 

Dollar

The dollar index rose 0.4% to 101.6, marking two-year highs, with a session-high at 101.7. 

Fed Chair Jerome Powell all but confirmed a 50 basis points hike in May, with analysts expecting multiple more similar hikes throughout 2022.

Copper

A stronger dollar hurts copper and other metals as their prices become costlier to holders of other currencies. 

Copper futures due in May fell 2.9% to $4.47 a pound as of 13:56 GMT.