BANGALORE: Copper prices edged lower on Tuesday as the US dollar regained footing ahead of Federal Reserve Chair Jerome Powell’s speech this week, while elevated inventories also kept prices of the metal under pressure.
Three-month copper on the London Metal Exchange was down 0.3% at $7,951 per metric ton by 0245 GMT, while the most-traded November copper contract on the Shanghai Futures Exchange also dipped 0.3% to 66,100 yuan ($9,039.44) per ton.
The dollar was up 0.1% as markets awaited Powell’s speech on Thursday to weigh the US central bank’s upcoming policy moves. A stronger dollar makes commodities priced in the US currency more expensive for overseas buyers.
Goldman Sachs said on Monday it expects industrial metals markets to remain vulnerable to incremental softness in the near term due to deteriorating demand and the impact from higher interest rates.
The copper market could face near-term pressure from the likelihood that Chinese imports of the metal could be restrained, the bank said in a note. China’s trade data on Friday showed September imports of copper, used widely in the construction, transport and power sectors, fell 5.8% year-on-year.
However, copper stocks on the LME held near their highest levels since October 2021, while those in SHFE warehouses recorded weekly gains last week.
Copper propped up by weaker dollar, nervous over Mideast
In other metals, LME aluminium was down 0.2% at $2,176.50 a metric ton, tin fell 0.2% to $25,155, zinc dropped 1.4% to $2,410.50, lead gained 0.8% to $2,089, and nickel eased 0.2% to $18,525.
SHFE aluminium shed 0.8% to 18,795 yuan a metric ton, lead rose 0.5% to 16,245 yuan, while nickel slipped 1.5% to 149,970 yuan, tin was steady at 216,960 yuan, and zinc slid 1.5% to 20,880 yuan.
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