Copper prices decline as markets assess collapse of Silicon Valley Bank

Copper prices fell amid uncertainty on Chinese demand while markets assess the sudden collapse of the Silicon Valley Bank. 

Copper futures due in three months at the London Exchange for minerals fell 0.9% to $8,788 a tone, after reaching March 7 highs at $,8950. 

China

Concerns about weak demand in China following the easing of Covid 19 restrictions, which continue to weigh on minerals. 

The trajectory of US interest rates continues to weigh on prices as well as the US economy faces a mixed outlook with inflation data to be deciding for Fed's policies later this week. 

‏Copper prices fell even as the dollar lost ground, which makes dollar-denominated futures cheaper for holders of other currencies. 

The dollar index fell 0.9% to 103.6 as of 15:09 GMT, with a session-high at 104.3, and a low at 103.5, amid estimates the Fed will be more bearish in its policies as authorities try to contain the fallout of the Silicon Valley Bank collapse. 

Copper supplies are also expected to rebound as a major Peru mine is resuming operations following disruptions. 

Copper futures due in May stabilized at $4.03 a pound as of 14:59 GMT, but leans lower.