Copper falls as rising inventory weighs
XLB•Other metals move mixed
Among other LME metals, aluminium CMAL3 rose 0.09%, zinc CMZN3 fell 0.47%, lead CMPB3 gained 0.18%, nickel CMNI3 declined 0.46% and tin CMSN3 dropped 0.73%.
On SHFE, aluminium SAFcv1 was up 0.89%, zinc SZNcv1 rose 1.15%, lead SPBcv1 gained 0.47% and nickel SNIcv1 added 0.83%, while tin SSNcv1 fell 0.72%.
Dollar weakness and Fed event in focus
The U.S. dollar =USD hovered near multi-month lows on Monday after falling nearly 1% last week, weighed down by concerns over U.S. debt and the Treasury's move to increase buybacks of longer-dated bonds. A weaker dollar makes greenback-priced commodities cheaper for buyers using other currencies.
The market will monitor this week's Jackson Hole meeting and the Federal Reserve Chair's speech for more interest-rate clues.
Warehouse stocks rise on both exchanges
Copper inventories in LME-monitored warehouses MCUSTX-TOTAL slipped 0.56% to 238,575 tons on August 20, but remained around 16% higher than the 204,975 tons recorded on Aug. 14, when stocks were at their lowest since February.
Inventories in warehouses monitored by the Shanghai Futures Exchange CU-STX-SGH also rose sharply last week, jumping 28.4% to 89,548 tons on Friday. On-warrant copper stocks increased by 12,429 tons to 46,105 tons.
Inventory increases on both exchanges, along with the rapid narrowing of the LME backwardation, have eased some immediate availability concerns that drove copper prices and nearby spreads sharply higher last week.
Copper eases on higher inventories and narrower spreads
Aug. 24 (Reuters) - London copper fell on Monday as a build-up in exchange inventories and a sharp narrowing in nearby spreads pointed to easing supply tightness, while a weaker U.S. dollar limited losses.
