Copper falls on stronger dollar, Chile supply worries cap downside
RING•Copper fell 0.2% to $14,595 a metric ton as a stronger dollar and reduced risk-taking ahead of a Chinese holiday weighed on prices, while concerns about Chilean mine disruptions limited losses. The metal is up 9% this quarter after reaching a record $14,875 two weeks ago.
1. Copper prices slip
Three-month copper on the London Metal Exchange dipped 0.2% to $14,595 a metric ton by 1405 GMT on Thursday. Prices have gained 9% this quarter, after hitting a record $14,875 a ton two weeks ago.
2. Supply concerns persist
A stronger dollar and reduced risk-taking ahead of China's long holiday weekend weighed on sentiment. The LME cash copper premium over the three-month contract widened to $107.5 a ton, its highest since September 1, from zero a week earlier, signaling tight nearby supply. Operations at BHP's Escondida mine in Chile were suspended Wednesday after a worker was killed, while two unions at Antofagasta Minerals' Centinela mine called for workers to hold a strike vote amid contract negotiations.
