Updates prices at 1600 GMT
By Ashitha Shivaprasad
May 22 (Reuters) - Copper prices hit a three-week low on Thursday and other base metals also eased as uncertainty persists over economic conditions and demand growth.
Benchmark copper on the London Metal Exchange (LME) was down 0.4% at $9,498 a metric ton by 1600 GMT. Earlier in the session, prices touched their lowest since May 1 at $9,223.20.
"A real state of paralysis has swept through metals markets," said Alastair Munro at broker Marex, pointing to the expiry of LME benchmark contracts this week.
Prices have been pressured by a sharp rise in Chinese last week, ending a three-week run of large withdrawals. Analysts and traders said that the rise was due to tepid copper demand in China and steady output from a growing smelting sector.
Also weighing on the market was the prospect of more supply after in East Java resumed operations ahead of schedule after a fire last year. It is expected to produce copper cathode by the fourth week of June.
Investor sentiment, meanwhile, remained subdued in the face of a deteriorating U.S. fiscal outlook, with last week's fueling a growing “Sell America” narrative and leaving markets adrift.
Further dampening the market was a firmer U.S. dollar after data showed picked up in May, making dollar-priced metals more expensive for buyers with other currencies.
LME lead was down 0.3% at $1,968 a ton after touching its lowest since May 9 at $1,947.50.
On-warrant LME lead inventories have surged by 91% over the past two days to 234,000 tons, their highest since December 2024.
Among other metals, aluminium dropped 0.6% to $2,456 a ton, nickel was down 0.6% at $15,510, tin fell 1.2% to $32,455, while zinc added 0.3% to $2,702.
(Reporting by Ashitha Shivaprasad in Bengaluru
Editing by David Goodman)
((Ashitha.Shivaprasad@thomsonreuters.com [Ashitha.Shivaprasad@thomsonreuters.com];))
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