(Updates prices)<\/p>\n
HANOI, May 24 (Reuters) – Prices of base metals dropped on Monday after regulators in top consumer China warned domestic commodity companies to maintain \u201cnormal market orders\u201d following a recent record rally.<\/p>\n
Three-month copper on the London Metal Exchange was down 0.1% at $9,870 a tonne by 0708 GMT, aluminium dropped 1.5% to $2,335 a tonne while zinc declined 1.5% to $2,927 a tonne.<\/p>\n
In Shanghai, copper closed down 1.4% to 71,640 yuan ($11,136.50) a tonne, aluminium hit a one-month low of 17,935 yuan a tonne, nickel fell to a four-week low at 122,570 yuan a tonne while zinc shed 1.1% to 22,155 yuan a tonne.<\/p>\n
Several authorities in China held a talk on Sunday with major domestic commodity companies and urged them not to drive up prices, the country\u2019s National Development and Reform Commission said in a statement.<\/p>\n
\u201cThe rally in copper and iron ore appears to have stalled as investors become increasingly concerned about regulatory constraints and easing stimulus measures,\u201d said ANZ analysts in a note.<\/p>\n
Prices for copper hit record highs earlier this month, along with a rally in other commodities, on rising demand as lockdowns to curb the COVID-19 pandemic have eased and government stimulus has boosted consumer spending globally.<\/p>\n
* Restrictions on electricity supply in the drought-hit Yunnan province in southwest China could lead to the temporary shutdown of almost 1 million tonnes of annual aluminium smelting capacity, consultancy Aladdiny said.<\/p>\n