Copper slips on firmer dollar, supported by supply worries
XLB•Copper fell 0.1% to $14,405.50 a metric ton as a stronger dollar weighed on prices, while firm demand and possible mine disruptions limited losses. LME warehouse inventories have dropped 36% since early June, and Shanghai-linked stocks have fallen 79%.
1. Dollar weighs on copper
Benchmark three-month copper on the London Metal Exchange was down 0.1% at $14,405.50 a metric ton by 0950 GMT on Wednesday. A firmer dollar put pressure on dollar-denominated industrial metals by making them more expensive for buyers using other currencies.
2. Supply concerns offer support
Copper losses were limited by firm demand and worries about possible mine disruptions. Workers at Chile's Centinela copper mine were set to strike after talks between two unions and Antofagasta Minerals broke down. LME registered warehouse inventories have fallen 36% since early June, while stocks in facilities linked to the Shanghai Futures Exchange have declined 79%.
