Copper hits 10-day low as oil rally, strong dollar weigh
CPER•Copper fell to a 10-day low as rising oil prices and a strong U.S. dollar weighed on metals. Three-month copper on the London Metal Exchange was down 1.06% at $14,467.50 a metric ton, after reaching $14,440.
1. Copper falls
Benchmark three-month copper on the London Metal Exchange fell 1.06% to $14,467.50 a metric ton by 0332 GMT on Monday, after touching $14,440, its lowest since September 18. The most-traded Shanghai Futures Exchange copper contract dropped 0.72% to 109,420 yuan a ton.
2. Market pressures
Brent crude rose nearly 2% after U.S. President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz and end the conflict. The U.S. dollar hovered near a two-month high, making dollar-priced metals more expensive for holders of other currencies. In China, industrial profit growth slowed to 4.2% year on year in August from 11.2% in July.
3. Chinese demand outlook
Downstream users are expected to restock ahead of China's seven-day National Day holiday, but elevated spot premiums and high copper prices may curb demand, Jinrui Futures said. Copper premiums in China stood at 1,315 yuan a ton on Thursday, just below a weekly peak of 1,375 yuan.
