Copper prices fell to their lowest in more than a week as a strong dollar made metals expensive to buyers using other currencies, while the market awaited further economic support from China.
Three-month copper on the London Metal Exchange (LME) fell as much as 0.9% to $8,297 per metric ton by 0801 GMT, the lowest since Aug. 22.
The most-traded October copper contract on the Shanghai Futures Exchange (SHFE) dropped as much as 0.8% to 68,950 yuan ($9,410.79) a ton, the lowest since Aug. 29.
The dollar index hovered near its highest in nearly six months after the US services sector unexpectedly gained steam in August.
China’s yuan fell to a 10-month low, despite exports and imports falling somewhat less than expected in the world’s second-biggest economy.
However, imports and exports in China still fell and Beijing still risks missing its economic growth target this year, hurting risk sentiment across financial assets.
“China is still in the stage of expecting more policy support,” said Huatai Futures in a report, adding that a rising dollar put pressure on prices albeit only at a limited rate.
“Downstream processing companies generally have a cautious wait-and-see mood… The spot market is weak.” Yangshan copper premium fell from its highest since December last year on Tuesday at $61.50, indicating easing demand to import copper into China.
SHFE zinc jumped as much as 0.9% to its highest since April 19 at 21,520 yuan a ton. LME zinc eased 0.2% to $2,457.50 a ton.
LME aluminium dipped 0.1% to $2,191.50 a ton, nickel dropped 1.2% to $20,340, lead edged up 0.2% at $2,229 and tin fell 0.8% to $26,050.
SHFE aluminium rose 0.6% to 19,175 yuan a ton, nickel dropped 2.6% to 167,620 yuan, lead rose 2.2% to 17,075 yuan while tin fell 0.5% to 221,200 yuan.
Comments
Comments are closed.