BEIJING: London copper prices slipped from a near four-month high on Monday as the U.S. dollar strengthened but supply worries amid production disruption in the Cobre mine in Panama capped further losses.
Three-month copper on the London Metal Exchange was down 0.4% to $8,579.50 per metric ton by 0147 GMT. The contract hit $8,640 per last Friday, its highest since Aug. 4.
The dollar index bounced on Monday, as geopolitical tension in the Middle East returned to focus and investor caution against a key employment report later this week.
Copper near 10-week high, but China data weighs
A stronger dollar makes it more expensive to buy the greenback-priced commodity.
But supply-side disruptions in the Cobre mine in Panama owned by First Quantum Minerals triggered worries in a market recording falling inventories.
First Quantum has suspended its current-year production outlook for the Cobre mine and has initiated international arbitration over a contested contract with the country’s government, the miner said on Friday.
Amid the supply unceratinty, global miners reached agreements with Chinese smelters for a lower copper concentrate treatment and refining charges (TC/RCs) for 2024, the first drop in three year.
The most-traded January copper contract on the Shanghai Futures Exchange rose 0.8% to 68,880 yuan ($9,658.15)per ton.
LME aluminium shed 0.2% at $2,204 a ton, tin added 0.6% to $23,900, zinc gained 0.1% to $2,511, lead nudged up 0.2% to $2,124, and nickel fell 1.6% to $16,775.
SHFE aluminium climbed 0.6% to 18,665 yuan a ton, zinc rose 0.8% to 20,895 yuan, nickel increased 0.5% to 130,050 yuan, while tin moved 2.2% to 200,120 yuan, while lead slid 0.9% to 15,720 yuan.
Source: Brecorder
