Copper drops to 3-week lows as inventories rise, focus remains on oil
XLB•Other industrial metals also soften
Overall industrial metals came under pressure from the firmer U.S. currency, which makes dollar-priced commodities more expensive for holder of other currencies.
Aluminium CMAL3 slipped 0.1% to $3,240, zinc CMZN3 was down 0.7% at $3,766, lead CMPB3 ceded 0.3% to $1,876, tin CMSN3 was little changed at $51,850 and nickel CMNI3 retreated 0.9% to $16,190.
Tariff uncertainty and oil prices weigh on metals
Copper prices across maturities started to fall last week after sources told Reuters U.S. President Donald Trump had not yet made a decision on whether to impose tariffs on copper imports.
The possibility of tariffs on U.S. copper imports pushed Comex copper prices to levels above LME prices. Traders have, for the past 18 months, shipped copper to the United States, taking Comex stocks to record highs HG-STX-COMEX.
"Nothing good can come of confusing markets with what is essentially government policy," said Panmure Liberum analyst Tom Price. "My gut feeling is he will impose it at some point otherwise we're going to see the biggest trade reversal in the history of copper."
Analysts say concerns about oil supplies and prices at around $107 a barrel LCOc1, up from near $87 a barrel at the end of August, will weigh on growth, manufacturing activity and demand for metals.
Copper hits three-week low as LME inventories climb
LONDON, Sept 15 (Reuters) - Copper prices fell on Tuesday to their lowest levels in more than three weeks as inventories at the London Metal Exchange rose, growth concerns from higher oil prices escalated and the dollar climbed.
Benchmark copper CMCU3 on the London Metal Exchange firmed 0.1% to $14,021 a metric ton at 1006 GMT as bargain hunters entered the fray, traders said. Earlier in the session it dropped to $13,926, the lowest since August 20.
