Copper hits over one-week low as oil rally, strong dollar weigh
CPER•Copper fell to its lowest in more than a week as rising oil prices and a strong U.S. dollar weighed on metals. LME copper was down 1.42% at $14,415 a metric ton, after touching $14,389.50.
1. Copper prices fall
Three-month copper on the London Metal Exchange fell 1.42% to $14,415 a metric ton by 0310 GMT on Monday. It earlier touched $14,389.50, its lowest since September 17. The most-traded Shanghai Futures Exchange copper contract closed down 0.70% at 109,440 yuan a ton.
2. Market pressures
Brent crude rose more than 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; a stronger dollar makes metals priced in dollars 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. Demand and other metals
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. Other LME metals, including aluminium, zinc, lead, nickel and tin, also fell.
