Copper gives up gains as strong dollar and oil weigh
CPER•Copper fell 0.4% to $14,415 a metric ton after reaching $14,646.50, as a stronger dollar and rising oil prices offset support from Chinese buying expectations and tight supply concerns.
1. Copper retreats
Three-month copper on the London Metal Exchange fell 0.4% to $14,415 a metric ton in official trading, after earlier reaching $14,646.50, its strongest level since September 25. Expectations of restocking by Chinese buyers after a week-long holiday supported prices, as did low stocks and mine supply risks.
2. Supply indicators tighten
China’s Yangshan copper import premium rose 5% from its last pre-holiday assessment to $125 a ton, its highest since November 2022. LME copper stocks remained tight after 3,325 tons of warehouse withdrawal orders, while the cash contract premium over three-month copper rose to $107.50 a ton from about $89 on Wednesday.
3. Dollar weighs on metals
A firmer dollar sent LME metals lower after U.S. Federal Reserve minutes indicated policymakers viewed inflation as the biggest risk to their outlook. Strikes or potential strikes at the Centinela, Escondida and Padcal mines affect operations that account for nearly 5.5% of global copper mine production, an analyst said. Aluminium fell 1.6%, zinc 0.7%, lead 1.2%, nickel 0.9% and tin 2.5%.
