Copper prices in London were pressured by a stronger dollar on Friday, which weighed on the impact of a media report that said China plans to expand its strategic reserves of key industrial metals.
The National Food and Strategic Reserves Administration, which manages official commodities stockpiles, made price inquiries and bidding for the metals, Bloomberg News reported, without details on volumes or timing.
The metals in discussion to be purchased include cobalt, copper, nickel and lithium, the report said. Benchmark three-month copper on the London Metals Exchange (LME) was down 0.3% to $9,911 a metric ton as of 0339 GMT.
“The strategic buying news doesn’t have much impact on metals prices today, due to lack of details,” a trader said.
The dollar firmed, bolstered by the US Federal Reserve’s indication that there is no immediate intent to reduce interest rates.
The dollar index was up 0.2% to 103.96 after climbing 0.36% on Thursday.
A stronger US currency makes dollar-priced metals more expensive for buyers using other currencies.
Copper rallies to one-month peak on signs of improving demand
US President Donald Trump utilized emergency powers on Thursday to increase domestic production of critical minerals such as lithium and nickel, to counter China’s sector dominance and meet anticipated demand for electric vehicle batteries.
LME aluminium fell 0.4% to $2,649.5 a ton, lead was down 0.7% to $2,042, zinc lost 0.3% to $2,911, tin dropped 0.7% to $35,100, nickel fell 0.6% to $16,180.
SHFE copper lost 0.3% to 81,110 yuan ($11,252.64) a ton, SHFE aluminium fell 0.3% to 20,775 yuan, zinc rose 0.1% to 23,775 yuan, lead dropped 1.3% to 17,435 yuan and nickel lost 0.7% to 129,370 yuan. Tin gained 0.6% to 280,710 yuan.
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