London Metal Exchange copper fell on Thursday on concerns about further interest rate hikes by the U.S. Federal Reserve and a weak recovery in Chinese demand, while zinc hit a five-month low on rising inventories.
Three-month copper on the LME fell 1.02 percent to $8,874 a tonne by 19:22 Beijing time, after earlier hitting a one-week low of $8,838.
On Wednesday, New York Fed President John Williams said the level of inflation remains a problem and the Fed will act to bring it down. In his speech, he noted that recent stress in the banking sector could weigh on economic activity.
One commodity strategist said more hawkish language was hitting the market, with Fed officials increasingly diverging in their views, causing volatility.
"Most market participants expect the US to raise interest rates in May but are not sure what to do after that," she said.
She added that the uneven rebound in China's economy was also weighing on the market.
"In China, some of the downstream metal demand is not very strong. It's recovering, but gradually. Most of the growth has been in services."
The main May copper contract on the Shanghai Futures Exchange ended down 0.36 percent at 69,350 yuan a tonne.
Zinc for three-month delivery on the LME fell 1.29 percent to $2,754 a tonne, after touching $2,731, its lowest since Nov. 4.
LME zinc stocks have surged 21 per cent in the past two days and have more than tripled in the past two months.
"In zinc, inventories have been low for the past few years, coupled with tight supply from mines, but this year the supply side is improving and the fundamentals have become more accommodative," the strategists said.
In other base metals, LME-futures aluminum fell 0.51% to $2,432.50 a tonne. Tin for three-month delivery on the LME fell 0.08% to $27,060 a tonne. Lead fell 0.05% to $2,155 a tonne; Nickel futures rose 1.15% to $25,845 a tonne.
