Copper prices declined on Wednesday as concerns over coronavirus lockdowns in Europe pushed up demand for the dollar and dented the global economic recovery progress.

Copper, used widely in construction, manufacturing and power, is often used as a gauge of global economic health.

The U.S. dollar approached a fourmonth high on Wednesday, making greenbackpriced metals more expensive to holders of other currencies.

Threemonth copper on the London Metal Exchange fell 0.2 to 8,960.50 a tonne by 0710 GMT, and the mosttraded May copper contract on the Shanghai Futures Exchange closed 0.9 lower at 66,480 yuan 10,192.72 a tonne.

Escalating tensions between China and the West, as well as potential U.S. tax hikes hit sentiment and led to investors buying into safehaven dollar.

Renewed restrictions in Europe and other macro news are denting market sentiment, said ANZ analyst Soni Kumari, adding that Chilean miner Antofagasta avoiding a strike at its Los Pelambres copper mine also pressured prices.

However, copper prices remain sensitive to any mine supply risk and a synchronised economic recovery and green push should provide a broader support for demand despite the ongoing financial tightening in China, Kumari added.

FUNDAMENTALS

LME nickel fell 0.2 to 16,125 a tonne, zinc dropped 0.7 to 2,819 a tonne while ShFE nickel declined 2 at 120,820 yuan a tonne and ShFE zinc was down 1.8 at 21,635 yuan a tonne.

LME cash copper was traded at a discount of 1 a tonne to the…