NEW DELHI: Copper prices fell on Tuesday tracking a stronger US dollar and lacklustre demand in top metals consumer China. Three-month copper on the London Metal Exchange (LME) was down 0.4% to $9,299 per metric ton by 0410 GMT. It had dipped to $9,282, the lowest since Sept.16, on Monday.
The most-traded December copper contract on the Shanghai Futures Exchange (SHFE) fell 0.8% at 75,920 yuan ($10,500.26) a ton.
The dollar traded close to a four-month peak versus major peers, while bitcoin extended its record rally as investors continued to pile into trades seen as benefiting from the incoming Donald Trump administration.
A stronger dollar makes greenback-priced metals more costly for holders of foreign currencies.
“With little focus being paid to the effectiveness of subsequent support from China, we anticipate that the dollar will remain the primary factor influencing metal prices this week,” Sucden Financial said.
Investors have also been worried about US President-elect Donald Trump’s threats to impose stiff tariffs on China, which could dampen metals demand.
Copper dips as fall in Chinese new lending signals weak demand
China copper smelting and refinery operating rate dropped to 81.18% in October from the peak in July at 88.41%, said a note from broker Marex. Upcoming indicator of the Chinese economy’s strength will be the house price data due this Friday.
Among other metals, LME aluminium fell 1% to $2,561 a ton, nickel eased 0.6% to $16,010, zinc declined 0.3% to $2,971.5, tin fell 0.7% to $31,050, while lead firmed up 0.4% to $2,029.
SHFE aluminium fell 1.8% to 21,085 yuan a ton, nickel eased 0.7% to 127,660 yuan, zinc edged lower 0.2% at 24,870 yuan, tin fell 1.3% to 257,000 yuan, while lead climbed 0.8% to 17,000 yuan.
Source: Brecorder
