Industrial metals prices fell on Tuesday, as traders and investors sold risky assets amid escalating China-U.S. tensions on news that a high profile U.S. politician was expected to visit Taiwan, a self-ruled island claimed by Beijing.

U.S. House of Representatives Speaker Nancy Pelosi was expected to arrive in Taiwan later in the day, as several Chinese warplanes flew close to the median line dividing the Taiwan Strait, sources said.

Three-month copper on the London Metal Exchange CMCU3 fell 1.3% to $7,718.50 a tonne by 0406 GMT, and the most-traded September copper contract on the Shanghai Futures Exchange SCFcv1 declined 2% to 59,460 yuan ($8,783.25) a tonne.

“There’ll be some repercussions for Pelosi visiting Taiwan, so it’s risk-off now. Once the news of the action taken is announced, market will rally,” a trader said.

Metals prices have also been weighed down by weak consumption from top market China, and surveys showed weak factory activity across the United States, Europe and Asia in July, adding to fears of a recession and gloomy demand outlook.

LME tin CMSN3 dropped 2.6% to $24,250 a tonne, lead CMPB3 fell 0.4% to $2,045 a tonne, zinc CMZN3 eased 0.4% to $3,315 a tonne, while aluminium CMAL3 dipped 0.3% to $2,424 a tonne.

ShFE aluminium SAFcv1 shed 2.4% to 17,965 yuan a tonne, nickel SNIcv1 decreased 2.3% to 175,120 yuan a tonne, tin SSNcv1 dropped 3.9% to 191,860 yuan a tonne, and zinc SZNcv1 declined 1.1% to 23,865 yuan a tonne.

Meanwhile in Indonesia, authorities planned to impose export tax on nickel pig iron and ferronickel in the third quarter of 2022 to boost exports revenue and domestic output of higher-value products, a senior official told Reuters on Monday. Source: Reuters (Reporting by Mai Nguyen in Hanoi; Editing by Shounak Dasgupta and Rashmi Aich)