Copper falls on stronger dollar, Chile supply worries cap downside
CPER•Copper fell 0.4% to $14,565.50 a metric ton as a firmer dollar and reduced risk-taking ahead of a Chinese holiday weighed on prices, while supply concerns at Chilean mines limited losses.
1. Copper prices retreat
Three-month copper on the London Metal Exchange was down 0.4% at $14,565.50 a metric ton by 1001 GMT on Thursday. The metal is up 9% so far this quarter after reaching a record $14,875 a ton two weeks ago. China’s financial markets were closed for the Mid-Autumn Festival and were due to resume trading on Monday.
2. Mine disruptions support prices
The dollar held near a two-month high after a rally fueled by expectations of additional Federal Reserve interest rate hikes. Meanwhile, the premium of the LME cash copper contract over the three-month benchmark widened to $107.50 a ton, its highest since September 1, from zero a week earlier. Operations at BHP’s Escondida mine in Chile were suspended Wednesday after a worker was killed in an accident, while two unions at Antofagasta Minerals’ Centinela mine called for workers to hold a strike vote.
