Three-month copper on the London Metal Exchange had shed 2.3% to $8,775 a tonne by 1700 GMT, having hit $8,702 a tonne, its lowest since March 5.

“Chinese demand worries and a stronger dollar - these are the two main macro factors that’s causing a general loss of risk appetite across the whole commodity space,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

“I still see this as a correction, a long overdue one, but if copper weakens much further, that’s a general sign of ill health because copper has really been a fortress in terms of the outlook, one with the strongest fundamentals.”

Technical support was at a recent low of $8,570 and at $8,550, the 50-day moving average, he added.

Global equities languished close to two-week lows while the safe-haven dollar hit a four-month high against the euro on Thursday as investors worried that Europe’s COVID-19 response was lagging that of the United States.

LME cash copper was at a $4.25 a tonne discount to the three-month contract by Wednesday’s close, its biggest discount since Jan. 21, and was at parity on Thursday.

Inventories in LME warehouses have jumped 64% so far this month.

The Yangshan copper premium fell to $63.50 a tonne, its lowest since Jan. 4, while latest SMM data showed bonded copper inventories were at their highest since July 2019 at 377,800 tonnes.

LME tin gave up 2.1% to $24,775 a tonne.

A blockage of the Suez Canal by a container ship will worsen already tight tin supplies, said market analyst James Willoughby at the International Tin Association.

“This situation could add further upwards pressure on European tin premiums, which are already two times higher than last year,” he said in a note.

LME aluminium fell 0.5% to $2,247.50 a tonne, nickel declined 0.3% to $16,150, zinc shed 0.7% to $2,781.50 and lead dipped 0.2% to $1,936.